Term Insurance for Housewife

What is term insurance for housewife?

Term insurance for housewives is a life insurance policy that provides financial protection to the nominee in the event of the untimely demise of the homemaker (life assured) during the policy period. After the passing of the life assured during the policy term and subject to payment of all due premiums on time, the nominee receives a payout in lump sum, as regular income, or a combination of both, as decided at the time of policy purchase.

The sum assured can help the family cover daily expenses, pay for the children's education, medical costs and other important needs. Since housewives play an important role in every home, this term insurance plan helps secure their family’s financial future and peace of mind.

How to identify the best term insurance plan for a housewife?

The following aspects can help you identify the right term insurance:

1. Coverage Amount

   The coverage amount of a term insurance policy should reflect the economic value a housewife creates through unpaid work in the home, which includes childcare, household management, cooking, care of elder family members, and other tasks.

   
   

2. Check the Claim Settlement Ratio of the Insurer

   Always check the claim settlement ratio (CSR) before selecting a term insurance plan. A higher ratio shows the insurer’s reliability and strong record of settling claims, helping ensure your family gets timely financial support at the time of claim settlement.

   
   

3. Choose the Right Term Plan

   When buying a term insurance plan for a housewife, compare the types of term insurance plans available, such as term plan with return of premium, decreasing term plan, or increasing term plan. The term plan should match your family’s needs, future responsibilities, and financial goals.

   
   

4. Premium Affordability

   Look for a plan with affordable premiums and suitable coverage. You can use a term insurance calculator to compare plans, check premium amounts, and choose coverage that fits your family’s financial needs today and in the future.

   
   

5. Rider Benefits to Enhance Protection

   Check for the available riders under the chosen term plan. Adding riders to your term insurance gives broader financial protection at a nominal additional premium. The add-ons strengthen your cover, enhancing coverage under the plan.

   
   

Key Features of Term Plans for a Housewife

A typical term insurance policy has the following features that can be considered when buying the plan for a housewife:

• Assured* Payouts

  A housewife’s role, though unpaid, is invaluable. Term insurance ensures her family gets financial payout if she dies unexpectedly during the policy term.

  
  

• Policy Term

  This is the length of time the term insurance will be in force. Choose a policy term that provides coverage during the critical years when the family is most dependent on her for support.

  
  

• Premium Payment Term

  This indicates the periods when the premiums are to be paid, i.e., will the premiums be paid throughout the term of the policy, lumpsum or for a limited period of time. Flexible options are available to suit the financial needs of the family.

  
  

• Add-on Riders (Optional)

  Some term plans offer riders such as critical illness benefit rider, accidental death benefit rider, waiver of premium rider, etc as add on on the base for enhanced financial protection. These riders are available at an additional nominal premium.

  
  

Benefits of Term Insurance for Housewives

• Financial security

  A housewife’s contribution to the family is vital. A term insurance for housewives can help the family take care of the unforeseen expenses in her absence.

  
  

• Achieving Financial Goals

  In the event of the life assured’s demise, the death benefit from the term insurance will provide the financial resources required for the family to meet their planned life goals..

  
  

• Support for the Spouse's Retirement

  Term insurance can assist a housewife's spouse to get through their routine living costs, along with planning a safe and secure retirement.

  
  

FAQs

1. Why do housewives need term insurance?

   Even without earnings, a housewife’s domestic contributions are invaluable. The death benefit from the term insurance can act as a financial backup for expenses like children’s education, other financial liabilities .

   
   

2. Can spouses buy joint term insurance policies?

   A joint term plan can cover both spouses under one policy. If one passes away, the surviving partner receives the payout under the plan.

   
   

3. What happens if a housewife outlives the term insurance policy?

   If she survives the term and holds a regular term plan, no benefit is paid. Some term plans offer a Return of Premium feature that refunds premiums if the life assured survives the term.

   
   

4. Is it good to take term insurance for my wife?

   A housewife caregiving role creates dependencies. Term insurance provides financial security for the family in case of her demise.

   
   

5. Are premiums for term insurance affordable for housewives?

   Term insurance premiums for housewives tend to be lower, given women’s longer life expectancy.