Aasha is a homemaker who manages her home and the children independently as her husband, Shyam has to travel frequently for professional reasons. Aasha’s husband earns fairly well and he has managed to have a long-term savings plan in place.
Aasha’s friend Disha recently purchased a term plan and insisted that Aasha also takes a life cover for herself. Aasha understands that her husband needs a life cover because he is a sole bread winner of the family but she sees no reason for covering herself as she doesn’t gene is the estimated annual value of her services, assuming a nominal rate of return of 8% over a 10-year period, the value of Aasha’s services would be Rs 50 lakh. This is the estimated amount of cover that Aasha should take. In the unfortunate event of her demise, the insured amount can be invested to generate money for the household.
Another way of estimating Aasha’s insurance needs is to consider the changed household circumstances in the event of her death. Her husband may have to look for a job that will allow him to play a bigger role in family matters. This is likely to imply a lower salary as compared with what he has been earning all this while.
If Aasha’s insurance amount is invested, it should be sufficient to bridge this estimated loss of income. So, Aasha should look at a term insurance for this amount. It will offer a low-cost protection to her family in case of her untimely demise.
Edelweiss Tokio Life understands the importance of a homemaker and her role in supporting the family at every step. Edelweiss Tokio Life – Zindagi Plus is a term plan that provides a better half benefit under which a lumpsum amount would be given in case of the death of the policyholder and 50% of the life-cover that is up to Rs 1 crore will be provided to the spouse after the policyholder’s demise. In case of an unfortunate demise of the existing spouse the dependents will receive the sum assured. Under the better half benefit even housewives are covered.