More often than not, financial safety for the housewife is not given a priority. This is where term insurance for housewives comes into play. Contrary to popular belief, term insurance is not an option for the breadwinners only; these plans bring homemakers to the forefront of financial planning and give them a better sense of security. Let’s learn how term insurance is the right choice for homemakers.

Term Insurance for Housewives: An Overview

Term insurance is a type of life insurance plan that builds life cover for a specific number of years or term against regular premium payments. Term insurance is considered a reliable choice for housewives as it promises higher coverage at an affordable premium.

A term plan ensures that the basic needs of the loved ones are taken care of even when the insured is not around. In the event of an unfortunate event, if the housewife is not around, the financial strain can become a burden without a term plan to fall back on.

Did You Know that, according to a 2024 report, there has been an around 80% surge in women purchasing term insurance, and women account for 40% of the total policies purchased.

Why is it Important?

Benefits under a term plan for housewives go a long way. Let’s take a look at some of the benefits of term insurance for housewife:

1. Higher Coverage at an Affordable Premium
   Term insurance for family is designed to build pure life cover. Therefore, the coverage under such plans is substantially high, and the premiums are affordable. Some insurance plans also offer lower premiums for women to encourage housewives to make smart financial decisions at an early stage.
    
2. Riders for Enhanced Coverage
   In addition to offering life cover, the term plan now allows adding riders to enhance the coverage under an existing plan. While homemakers tend to ignore their health, a term plan rider like a critical illness rider, accident disability/death riders, etc, steps in to settle medical bills without any hassle.
   
   Did You Know that the average rate of anaemia in Indian women is 20% higher than the rest of the world?
    
3. Tax Exemptions and Deductions
   Since a term plan is a type of life insurance, there are several tax benefits offered under the Income Tax Act, 1961. For instance, under section 10(10D) of the Income Tax Act, death benefits offered under a term plan are exempted from tax liabilities.
    
4. Peace of Mind
   Knowing that the needs of their loved ones are taken care of even when they are not around gives peace of mind to housewives. Benefits offered under a term plan can keep the house running and take care of any major expense, like children's education or marriage.

How to Choose the Right Term Plan?

While term insurance is the right choice for housewives, it is important to pick the plan smartly. Here are a few considerations to bear in mind while choosing a term plan for housewives:

1. Assessing Financial Needs
   Assessing the financial needs of the family and financial stability is the first step. This helps understand the kind of coverage that would suffice for the family when the insured is not around.
   
   Pro Tip: Assess the future needs like children’s education and marriage expenses, paying off
   debts, etc.
    
2. Comparing Term Plans
   There is an overwhelming number of options available when you look for a term plan. So make sure to explore and compare plans smartly before making a decision.
    
3. Analysing the Insurance Company Reputation
   Coverage under a term plan becomes beneficial when the insurance company is efficient in settling claims smoothly. This is why analysing the insurance company’s reputation, understanding the claim process, etc, becomes important.
   
   Did You Know that the IRDAI publishes an annual report of the claim settlement ratio of life insurance companies that you can check?
    
4. Evaluating Additional Benefits
   Unlike traditional life insurance plans, a term plan offers several additional benefits like tax exemptions and riders. Make sure to evaluate these benefits under a term plan to get the most out of your plan.

To Conclude

The contributions of housewives in keeping the home together can not be measured, nor can a price tag be put on their love. However, by purchasing a term plan, a step can be taken. In today’s time, when women-related health conditions are prevalent, a term plan is a plan that ensures to take care  of the family after an unfortunate event and through riders, the medical expenses of the insured are settled as well. If you are a housewife or your spouse is a housewife, this is your sign to purchase a term plan for family.