Should housewives take term insurance plan?

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It won’t be wrong to say that term insurance has always been prioritized for males as they are the breadwinners of the family and the complete financial responsibility relies on his shoulders not only during his life but also after his demise. Moreover, the term insurance is highly forced on the earning members of the family, be it any profession, age and salary. But in all this, the highly neglected segment for term insurance is the homemaker.

Generally, housewives are never considered eligible for the term insurance schemes largely because they are not the earning members of the family and nor contributing financially to the family. Hence, people are never seen with an urge to secure housewives with term insurance.

Are housewives eligible?

To start with, if you are wondering if housewives are eligible to purchase term insurance plans, then, Yes they certainly are eligible for the term insurance and simultaneously, it is quite essential to buy a term insurance policy for them because, in today’s life, it has become significant to double the financial security of your loved ones in case anything happens to either one partner or both. The term plan for housewives ensures there are no financial constraints while fulfilling your child’s needs and upbringing, during any life event. Also, with the rising health care, living cost and increase in terminal diseases, it has become imperative to cover both housewives under an insurance policy like term insurance.

Since the term insurance is only issued to the earning people, so, in the case of housewives, their husbands are permitted to pay for the premium under the spouse payment clause.

Indeed, financial security is the major advantage of the term insurance plan but there are several more benefits offered to the homemaker with a term insurance scheme such as:

More coverage at a lesser premium: A term insurance plan for housewives with a large cover and affordable premium amount.

Increased protection: You have the option to increase the sum assured in many life events such as marriage, childbirth, etc.

Save taxes: The premiums paid and benefits received under these policies are eligible for tax benefits under Section 80C and 10(10D), respectively, of the Income Tax Act, 1961.

Buying a suitable term insurance plan is a must formula for everyone regardless of their age, responsibilities and gender. Hence, equal importance to the selection process of term insurance plans must be given when buying for housewives as well.

Sufficient sum assured

The foremost thing is the sum assured amount that should be sufficient for the family and to meet treatments in case of the illness. Additionally, liabilities, family requirements, and plans make an essential reason to go for the sufficient sum assured amount.

Claim settlement ratio is another crucial feature to consider at the time of buying that tells about the company’s success rate of claims settlement of the company so that the family doesn’t run from post to pillars to get the claim settled.

Functional Riders can enhance the benefits of the term insurance plan. Hence, while accident riders are highly opted by the male policyholders, females should take riders such as critical illness and terminal illness as they are likely to get diseases such as breast cancer, cervical cancer, etc.

(The author is Founder & CEO, PolicyX.com. Views expressed are personal)