The Importance of Term Plans for Housewives

 

A term plan provides the policyholder with life cover for a selected number of years. If anything happens to the insured during this time, the term plan cover amount gets paid to the insured’s nominee. Most people assume that only earning family members need to purchase a term plan. While it’s true that term insurance policies help replace lost income, non-earning family members need life cover as well. In fact, housewives can benefit substantially from having a term plan.

Why Should Housewives Buy a Term Plan?

Here’s a look at the most vital reasons why families must have a term plan for housewives:

1. They Take Care of All the Work

Many homemakers do not contribute financially, but they take care of many other responsibilities. They cook and clean the house, buy groceries, maintain a monthly budget and more. Several housewives complete everyday errands that others often ignore or forget about. If anything happens to the housewife, the family may have to hire other individuals to carry out these responsibilities. Term policy payouts can help take care of the cost of hiring others to take care of the housewife’s roles and responsibilities.

2. They Look After Childcare

Most women opt to stay home after becoming mothers. They take on the responsibility of looking after the children. Housewives ensure the children live healthy and well-rounded lives. Unfortunately, if anything happens to the mother who is the primary childcare giver, the family  may have to hire a babysitter or nanny or somebody else to look after the children. Of course, this will take a huge financial toll on them. The payout received from the term plan, although it cannot replace the mother, will help the family with the financial cost of hiring a childcare giver.

3. They Look After the Elderly

Many housewives spend a significant portion of their day looking after the elders in the family. Right from ensuring they take all their medicines to giving them their food on time, they take care of all their needs. If anything happens to the housewife, the elders feel stranded. Very often, the family hires nurses or full-time attendants to help. When the housewife has a term plan, the payout from the policy helps family members pay for the hired attendants and nurses, minimising their financial strain during a difficult time..

Benefits of a Term Plan for Housewives

Now that we know why housewives should purchase term plan cover, let’s take a look at how these policies are beneficial to housewives:

a. Affordable Premiums

Term plans offer the most affordable premium rates for life cover. Very often, women can purchase term plans for lower premium amounts than their male counterparts. Young housewives can purchase a term plan for an incredibly affordable rate.

b. High Term Plan Cover

A term plan provides a high sum assured amount at pocket-friendly prices. Since term plans are pure protection plans, housewives can opt for a very high sum assured amount without breaking the bank. If anything happens to the insured during the policy tenure, their nominee receives the sum assured as the payout.

c. Enhanced Protection with Riders

Today, policyholders can opt to enhance their cover by choosing the right term plan riders. Housewives can opt for a critical illness benefit or an accidental disability benefit in addition to the sum assured amount.

d. Tax Benefits*

Life insurance policies provide the insured with tax benefits as well. A term plan allows deductions under 80C, 80D and 10(10D) of the Income Tax Act 1961. Under Section 80C, the premiums paid for the upkeep of the plan, up to INR 1,50,000 per year, can get deducted from the individual’s taxable income. The premium for the critical illness benefit or rider, up to INR 25,000 per year, is also deducted from the taxable income. For senior citizens, this benefit increases to INR 50,000 per year. Finally, the payout that the nominee receives does not attract any tax as per Section 10(10D) of the Income Tax Act.

Should Housewives Buy Term Plan Cover?

In today’s world, many people are plagued by lifestyle and other diseases. Women suffer from issues such as cancer, PCOD, heart disease and diabetes. By purchasing a term plan, the housewife can safeguard her family’s financial future. In today’s competitive market, there are several types of term plan options available. By picking the right plan and the right riders, insured individuals can ensure that their families do not suffer financially.

As we can clearly see, a term plan for housewives should be a part of every family’s financial plan. Housewives must ensure that they pick the right term plan cover to alleviate their family’s financial troubles.

Related Articles: 

• Spouse Term Insurance: Term Insurance Plans for Husband and Wife
• "Non-working" Spouse - Term Insurance Cover
• The Importance of Term Insurance for Working Women
• Why Term Insurance is Important for Women?

ARN -  ED/10/23/5907