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Term Insurance for Housewives

Term insurance for housewife is a concept that needs to be understood well, yet the jargon can be overwhelming. Simplifying it, a term plan secures your family when you are no longer around. Don't delay; protect your loved ones now.

To delay is to regret

You may not always be around to take care of your family. And that’s when a term plan ensures your family is well protected.

Term Insurance

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Term Insurance for Housewives

The Ultimate Guide to ‘Term Insurance’ for a Housewife

The Ultimate Guide to Term Insurance for a Housewife
February 02, 2024

 

Term insurance for housewives is critical in addressing the financial commitment of these family pillars, which is sometimes underestimated. Recognising their indispensable function, these plans become critical to ensuring the family's future. They provide comprehensive financial security by covering a wide range of expenses and health care costs, protecting the family's well-being in the event of an emergency.

The belief that housewives do not contribute financially to their families is still prevalent in society. A housewife is the backbone of a family, providing care and support for loved ones. While she may not contribute financially, her role is invaluable and cannot be replaced.

However, in the unfortunate event of her absence, the family could face emotional and financial difficulties. That's why it's important to consider a ‘Term Insurance plan’ for a housewife. These plans provide additional financial security to cover various expenses and health costs. Term plan is  investment since it ensures that the family is well-protected and financially prepared for any unexpected situations.

Explore term insurance options to find a policy that caters to your family's unique needs and circumstances.

What is “term insurance” for housewife?

This plan provides financial protection to the family in the event of the policyholder’s death, ensuring that the family's needs are met and debts are paid. It is an important form of protection for any family. 

Why should housewives buy term insurance?

Term insurance for housewife offers financial protection for housewives and their families in the event of an unexpected death. 

It provides financial security for those who depend on them financially, such as children, spouses, aging parents, and other family members. 

It is more affordable than other types of life insurance and can provide coverage for a specific period of time. 

Term insurance can also provide protection for debts and other liabilities that the housewife may have. 

It can offer peace of mind for housewives, knowing that their families will be taken care of in the event of their death.

How to identify best term insurance plan for Housewife

Housewives play an integral role in most families, and their need for a secure life is no less than any other family member. That is why it is important for them to have a term insurance plan for housewife in place. 

A term insurance plan is a simple life insurance policy that provides a lump sum amount to the policyholder’s beneficiaries in the event of their untimely passing. Here are some tips to help housewives identify the best term insurance plan: 

1. Make sure the cover you choose is adequate:

When selecting a term insurance plan for housewife, it is important to ensure that the cover amount is adequate for your family’s needs. Consider the costs of maintaining your lifestyle, any outstanding debts, and other expenses that may arise in the event of your passing.

2. Check the Claim Settlement Ratio:

The Claim Settlement Ratio (CSR) is an important factor to consider when selecting a term insurance plan for housewife. The CSR indicates the number of claims that were settled by an insurance provider compared to the total number of claims made in a given period. The higher the CSR, the better the insurer’s claims settlement record. 

3. Keep the Term Plan Type in Mind:

Depending on your needs and financial objectives, you must select the appropriate term plan - whether it is an Increasing Term Insurance, Decreasing Term Insurance, or Return of Premium plan. Each of these plans offers different features, so you must pick the one that best fits your needs.

Key Features of Term Plan for Housewife

Here are some of the features of getting a term insurance policy for your homemaker spouse#. 

Financial Safety:

A term life insurance policy protects the family financially in the event of the housewife's sudden death. The nominee's death benefit might be used to pay off debts, support living expenses, or even invest for the future.

Pocket-friendly Premiums:

Term insurance premiums are often lower than premiums for other forms of life insurance plans, making it a viable alternative for housewives.

Flexibility:

Term insurance products provide flexibility in terms of coverage and policy term, allowing you to select the quantity and length of coverage that best meets your needs. 

Tax Advantages:

Premiums paid for a term insurance policy are tax deductible under Section 80C of the Income Tax Act. The nominee's death benefit is likewise tax-free under Section 10 (10D) of the Act3

Benefits for Children:

This plan also includes benefits for dependent children. This is a great way for women to contribute to their children's education, marriage, and other costs. 

Term Insurance Riders

HDFC Life’s Protect Plus Riders offer these additional riders to add a layer of security to housewives covered by term insurance.

Accidental Disability Ride1:

This rider provides financial protection for policyholders who suffer a disability as a result of an accident. This rider typically provides a lump sum payment to the policyholder if they are unable to work due to a disability caused by an accident. This rider can be used to cover medical expenses, mortgage payments, and other costs associated with a disability. 

Critical Illness Plus Rider2:

This rider provides financial protection for policyholders who suffer a critical illness. This rider typically provides a lump sum payment to the policyholder if they are diagnosed with a critical illness such as cancer, stroke, or heart attack. This rider can be used to cover medical expenses, mortgage payments, and other costs associated with a critical illness. This rider can also provide additional benefits such as paying for long-term care, or providing a living benefit to the policyholder.

Advantages of Term Insurance Plan for Housewife

1. Affordable premiums:

Term insurance plans are highly affordable, making them ideal for housewives who are on a tight budget. It also offers death benefit. 

2. Premium waiver:

A number of life insurance companies also offer premium waivers. This feature allows for the premium to be waived if necessary. In other words, the policyholder will not be required to pay the premium in certain cases. This is only applicable in situations where the policyholder is unable to pay the premium due to an accident or disability.

3. Tax benefits3:

Housewives can avail tax benefits on the premiums paid towards a term plan for housewife. Under Section 80C of the Income Tax Act, a maximum tax deduction of INR 1,50,000 can be availed. Furthermore, the payout to the nominee is also tax-free under Section 10(10D) of the Income Tax Act.

4. Financial security:

Housewives can ensure the financial security of their family by taking out a term insurance plan. In the event of the housewife’s death, the policy will provide the family with a lump sum amount to help cope with the financial burden.

5. Additional benefits:

Term insurance for housewife can provide additional features such as maturity benefits, protection against critical illnesses, disability coverage, and personal accident coverage to name a few. 

6. Online availability:

The best term insurance plans for housewife  are now available online, making it easier for housewives to compare and purchase policies. 

Why Consider a Term Insurance Plan for Housewives? 

A term insurance policy for housewives provides financial stability for a set period of time. The policy coverage typically extends from 18 to 45 years. However, some plans also cover the individual’s entire life.

If anything happens to the insured during the policy term, the insurance company provides the death benefit to the nominee, who might be the spouse or any other family member.

The payout helps safeguard the family and enables them to deal with any financial difficulties that may occur as a result of the housewife's absence.  

Reasons to get a term insurance policy as a housewife

  • Provides financial security for your family.

  • Greater coverage at a lower cost

  • Offers tax benefits

  • Can be customised with additional riders to enhance your coverage

  • Accumulate a financial reserve

  • Includes joint coverage benefits   

Process to buy a term insurance plan for housewives from HDFC Life

1. Housewives can benefit greatly from buying a term insurance plan from HDFC Life. A term insurance plan provides financial protection to the family in the event of the housewife’s untimely death. With HDFC Life you can select the best term insurance plan for housewife from a variety of plans that provide a variety of coverage options that are easy to understand.

2. The process for buying a term insurance plan for housewife from HDFC Life is simple and straightforward. First, the housewife must decide the amount of coverage she needs. This can be based on her current financial situation and her family’s future financial needs. 

3. The next step is to compare the different plans available from HDFC Life. Once she has chosen the plan that best meets her needs, she can fill out the online application form from HDFC Life. The application process requires basic personal information such as name, address, and date of birth. The housewife will also need to provide information regarding her health, lifestyle, and any existing medical conditions. HDFC Life will use this information to assess the risk and determine the premium.

4. Once the application is filled out and submitted, HDFC Life will review the application and provide a quote. The housewife can then decide if she wants to proceed with the plan or not. If she decides to proceed, she will need to pay the premium in order to activate the plan. Once the premium is paid, the housewife will receive a confirmation of the policy. She can then start to enjoy the benefits of the plan, such as peace of mind, financial protection, and tax savings. It is important to remember that term plan for housewife is renewable, so the housewife can continue to benefit from the plan for as long as she needs it. 

5. HDFC Life also provides excellent customer service, so any questions or concerns can be easily addressed. By following the process outlined above, housewives can easily purchase a term insurance plan from HDFC Life and enjoy the security and peace of mind it provides.

Should Housewives Get Term Insurance Plans?

Women today face several health challenges, including conditions like PCOD and breast cancer, and sometimes even death during childbirth. With this in mind, it has become increasingly important for them to engage in long-term financial planning. A term insurance plan should be a crucial component of the planning process.

Some of the key benefits of term insurance for housewives include guaranteed financial support for nominated beneficiaries to cover necessary expenses, tax savings, and the option to add riders to the policy that can help cover the financial costs associated with serious illnesses. 

Things to Consider While Choosing to Invest in Term Insurance

Before investing in a term plan for housewives, there are a few important factors to keep in mind. Remember, there may be limited policy options available specifically for housewives. Take the time to compare the various policy products offered by different companies to find the best fit. 

  • It's always a good idea to carefully review the eligibility requirements and policy terms and conditions before making a decision.

  • It is important to assess whether the sum assured will provide adequate financial security for your loved ones in case of an unforeseen event. The working spouse’s life insurance coverage should ideally be around three to five times their annual salary.

  • When considering different plans, it's essential to obtain premium quotes from multiple providers to ensure that you're getting the best possible deal.

  • Choose a policy that you can comfortably afford, while also ensuring that it provides the coverage that you need.

  • Select a reputable insurer with better claim settlement ratio (CSR) and a rapid claim settlement process to ensure that your dependents do not have to struggle financially.  

Choosing a suitable sum assured for Term Insurance for Housewife

A term plan for housewife is an important financial tool for protecting their families from financial distress in case of her untimely demise. The sum assured should provide adequate financial protection for the family. The sum assured should be enough to cover the family's living expenses, medical expenses, outstanding debts, children’s education, and other financial obligations. 

When choosing a sum insured, a housewife should take into account her family's current and future financial needs. Additionally, it’s important to consider the inflation rate of the country and the rising cost of living. The sum assured should also be affordable and within the housewife's budget. It is advisable to opt for a higher sum assured as it provides more financial protection to the family in the long run. 

It is important to carefully consider the family's financial needs before selecting a suitable sum insured for a term insurance for housewife.

Conclusion:

A term life insurance policy helps your family when you are no longer there to provide for and look after them. The plan provides financial support in your absence. Investing in a term insurance plan can support your family with their financial needs and take care of your loved ones in your absence. Compare the term insurance plans on offer and select the best plan option based on your unique needs.

FAQ's On Term Insurance For Housewife  

Q - Can a housewife get term insurance?

Yes, housewives can get term insurance for financial security and peace of mind. It is affordable and provides coverage for a predetermined period of time, protecting their family in case of death or illness. Term insurance plan for housewife is an important way to ensure the safety of their family.

Q - Why do housewives need term insurance?

Term insurance plan for housewife provides financial protection to their family in their absence. It provides a lump sum amount to the family in case of the housewife's death which can be used to pay off debts, cover expenses, or invest in a secure future for the family. 

Q - Is term insurance for a housewife expensive?

It depends on the coverage and the term length. Generally, term insurance for housewife is not expensive and can be more affordable than a permanent policy. The premiums can vary depending on the insurer and the housewife's current health and age.

Q - Can housewives buy joint term insurance policies with their spouses?

The term insurance plan for housewife can be bought jointly with their spouses. Joint term insurance is designed to provide financial protection for both partners. It is usually cheaper than buying two individual policies, as the premiums are shared between the two.It also offers tax benefits.

Q - What happens if a housewife outlives the term insurance policy?

If someone outlives her term insurance plan for housewife, then the policy will expire and she will no longer receive any benefits from the plan. However, the housewife can renew the policy and purchase another term plan for housewife if necessary.

Q - Can housewives add riders to their term insurance policies?

Yes, housewives can add riders to their term plans for housewife. Riders are additional benefits that can be added to the policy for a small fee. These riders can provide additional coverage for accidental death, disability, and critical illness. Additionally, riders can also provide coverage for additional family members.

Q - Is term insurance for housewives taxable?

Generally, term insurance for housewife is not taxable. Premium payments are not taxable and any benefits received from the policy are also not taxable. However, if the policy is part of a larger life insurance package, then the premiums and benefits may be taxable.

Q - What is the age limit of buying term insurance for housewives?

The age limit for buying term plan for housewife usually depends on the policy and the insurance company. Generally, the age limit is between 18 and 65 years old. It is also important to note that some policies may have higher or lower age limits. It is best to check with the insurance company for details.

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Should You Buy Term Insurance For Senior Citizens?

ARN - ED/12/23/7271

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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##Individual death claim settlement ratio by number of policies as per audited annual statistics for FY 2022-23.

#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved

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1HDFC Life Income Benefit on Accidental Disability Rider (UIN: 101B013V03) is a Non-Linked, Non-Participating Rider.

2HDFC Life Critical Illness Plus Rider (UIN: 101B014V02 ) is a non-linked, non-participating rider.

3Tax benefits are subject to conditions under Sections 80C, 10(10D) and other provisions of the Income Tax Act, 1961.