When you think of term insurance, the most obvious reason to buy a term plan is if you are the sole earning member of your family. In such a case, your family members depend on you for their survival and would require back up funds if you were no longer around to cover their needs.
However, the truth is somewhat different. Term plan benefits are not limited to people earning for their families but also to those who are the primary caretakers of the family, such as housewives. A term plan can be one of the most crucial tools for a housewife as it can provide you with many benefits, as explained in this article.
Why do housewives need to buy term insurance?
Term insurance is a financial tool that safeguards the family’s interests in the absence of the policyholder. Not many people realize this, but a housewife does most of the work in a house, and her presence is undeniably irreplaceable. Moreover, her absence can cause more than just an emotional void.
A housewife needs to buy a term plan for the following reasons:
1. Housewives do all the housework: Housewives generally take care of all chores in the house. Right from cooking and cleaning to purchasing groceries, maintaining the house’s budget, and a lot more. All of these chores may go unnoticed sometimes. But if you were to quantify them, you will realize the massive contribution of housewives towards the family. Their absence can leave a family in emotional and economic despair. A term life insurance plan can help here. The funds from the insurance plan can be used to hire someone to carry out these duties.
2. Housewives take care of children: Housewives who are also mothers spend a major part of their day taking care of their children. Hiring a babysitter can cost a lot of money over the long run. However, housewives help eliminate this expense with their undying love and attention for their children. However, in the unfortunate event of death, the only option available to a family in most cases is to hire child care services. These can be expensive, but you can buy term insurance to cover the costs.
3. Housewives take care of the elderly: Just like children, the elderly can also require help and assistance with age. As their reflexes slow down with age, their dependency on others increases. Whether it is cooking for them or taking care of their routine needs, a housewife takes care of most of their needs. In her absence, it becomes essential to hire an attendant. You can buy term insurance online to provide for these costs.
4. Housewives can be role models as well teachers: Not only do housewives take care of children, but they also teach them and help them with their school and college studies. They can be tutors and caretakers at the same time. Filling in these shoes can be a difficult job and also cost a lot of money. But a term plan payout can help hire the necessary help.
What are the term plan benefits for housewives?
A term plan can come with the following benefits:
1. Affordable premiums: You can buy an online term insurance plan at affordable rates. Term plans are very affordable and can offer value for money. In fact, the sooner you purchase a term plan, the lower would be its premium as premiums tend to rise with age.
2. High sum assured amounts: You can buy a high sum assured at very low premiums. This is primarily because a term insurance policy is a pure protection plan with no investment component. The entire premium is invested towards the sum assured that is paid to the nominee upon death during the policy term.
3. Riders for added protection: Term insuranceoffers many additional benefits apart from life protection. You can add riders, such as a critical illness rider, a permanent disability rider, or an accidental death rider. Riders like the critical illness benefit can, in fact, offer housewives health insurance and protect them against the costs of healthcare. Other riders can benefit the family with higher payouts and other things.
4. Tax benefits: The tax benefits of term insurance contribute to further savings. You can claim tax exemption under Section 80C, Section 80D, and Section 10(10D) of the Income Tax Act, 1961.
- Section 80C: The premium paid towards a term insurance plan is tax-deductible up to a limit of ₹1.5 lakhs per annum.
- Section 80D: The premium for a critical illness benefit is also tax-deductible up to ₹25,000 (₹50,000 for senior citizens) per annum.
- Section 10(10D): The death benefit is tax-free, subject to conditions.
Should housewives invest in a term insurance plan?
Yes, housewives should definitely invest in a term insurance plan. With a rise in health issues like breast cancer, Polycystic Ovarian Disease (PCOD), etc., a term insurance policy can be a necessity in today’s times. Term insurance plans with added riders like a critical illness benefit can also help housewives cover their medical expenses.
Moreover, there are many types of term insurance plans like traditional term insurance plans, term insurance with return of premium plans, etc. So, there is a wide selection to choose from.
Edelweiss Tokio term plan also offers great benefits for housewives and their families. The term plan can offer a high sum assured at an affordable premium. The premium payment method is flexible and can be used as per the nominee’s preference and need for funds.
All in all, a term insurance policy can be a great financial addition for any family.
Term plan benefits for housewives make for a long list. So, go and ahead and get a good term plan if your family members are greatly dependent on you. While no one can compensate for the loss of a person, financial assistance surely does make things simpler and better with time. A high sum assured can also help children achieve their goals and settle down in life, helping housewives leave a legacy behind for their kids.
Chirag Iyer - BFSI Enthusiast
Chirag is a writer and an avid reader who loves to drink coffee! His other interests include boxing, karate, and singing.