Term Plan for Housewife: Things Homemakers Need To Consider Before Buying One

In today’s fast world, financial security has become a priority for every family, where the insurance secures the breadwinner, & the future of the housewife is nonetheless considered necessary. Housewives are considered to be pillars of the family, supporting the family, taking care of all family members, & performing invaluable household chores without any salary. Buying term insurance for a housewife ensures financial protection, mental peace & covers expenses such as children’s education, children’s marriage, medical expenses, etc.,  in case of any unfortunate event. Also, it provides additional riders, which help enhance the plan, offer safety, & cover health-related risks as well. 

Features of a Term Plan for Housewives

Provided are the features of the term plan for housewives:

• Debt Repayment: The proceeds from the term plan will help in case the family is burdened with an outstanding loan. It will help relieve the financial stress during such a distressful period.
• Children's Education: The insurance proceeds will also help to handle future education expenses, which ensures that the education is not hampered.
• Replacing Lost Household Services: The funds' proceeds also help to manage the household chaos that housewives used to perform, like babysitting, housekeeping, home management, etc.
• Cost-Effective Premiums: The premium amount for a housewife is comparable to that of working women.
• Customisable Policy: Some of the companies also allow customisation of the plan according to your requirements.
• Lump-Sum Payout: The lump-sum payment amount received on the sudden demise of a housewife can be used to fulfill future financial obligations.

Things to be Considered before buying a Term Plan for Housewives

Provided are the things to be considered while buying the best term insurance plan in india for housewives:

• Evaluation of Financial Contribution: Though housewives perform non-financial duties, they still have some economic value, which should be evaluated. This should be done considering the economic value of physical contributions made by housewives.
• Modify the Amount of Coverage: Analyse the financial requirements & future needs to evaluate the coverage required against the unpaid duties performed by the homemakers. Examine the current debts & obligations, cost of living, utility bills, medical expenses, etc., to ascertain the coverage amount.
• Permanent vs. Term Insurance: Consider the financial needs of your family when deciding between life & term insurance. Life insurance is a pure protection cover offered for a pre-determined tenure, whereas a term plan offers a death benefit with an investment benefit.
• Add-Ons & Riders: Understand the additional add-ons & riders available that best suit your requirements & increase the coverage of the plan. Such add-ons & riders may include waiver of premium, accidental death riders, critical sickness riders, etc.
• Health Issues & Insurance: Evaluate the amount of premium considering the pre-existing illnesses or health issues the housewife has. Discuss with your insurance company agent to get the greatest benefits out of your plan in terms of coverage.
• The Insurance Company's Financial Strength: Evaluate the financial background of the insurance company in terms of claim settlement, i.e., perform an investigation, check for their rankings & reputation, customer reviews, etc.
• Forecasting & Inflation: While deciding on coverage, take the inflation factor & future expenses also into consideration. This should be done to secure the financial future of your family in the event of uncertainty.
• Tax Consequences: Ascertain the tax implications on the premium amount, death benefit, etc., of the term plan for beneficiaries.
• Flexibility & Convertibility: Choose a plan which offers flexibility in terms of changing its type & level of coverage depending on the financial needs of your family.
• Compare Multiple Quotes: Finally, compare different quotations received on the different parameters, such as premium cost, coverage offered, critical riders, etc. 

How Does Term Insurance Work for Housewives?

Let us know the process of how a term insurance works for housewives:

• Purpose of Coverage: Though a housewife may not be financially supported, her physical contribution has an economic value. This might be affected by her sudden demise, & term insurance plays a vital role. Hence, first, the need & purpose, as well as why & how much coverage from a term insurance is required, must be analysed.
• Selection of Policy: One should buy a term plan for housewives that is equal to the amount that reflects their economic contribution. The policy should be bought considering the financial requirements & future objectives of the family.
• Premium Payments: Consider the premium to be paid towards the term plan throughout the policy tenure.
• Beneficiary Designation: In case of the death of the policyholder, i.e., the housewife, the insurance claim would be received by the beneficiaries. The beneficiaries in this case would be the spouse & dependents.
• No Need for Income Proof: This plan does not require any proof of income, which makes it easy to obtain a term plan.

Types of Term Insurance Plans for Housewives

Provided below are the types of term insurance plans for housewives:

• Increasing Term Insurance Plans Under this type of plan, the amount of sum assured increases annually by a pre-specified amount. This means the coverage amount increases, but the premium amount remains the same.
• Decreasing Term Insurance Plans Under this plan, the amount of the sum assured will be reduced at a pre-determined rate according to the remaining loan amount annually. But here, the premium amount remains the same, which makes this plan cost-effective.
• Level Term Insurance Plans Under this plan, the amount of sum assured remains constant throughout the policy tenure.
• Term Plans with Return of Premium Under this plan, the policyholder will receive a return of the premium paid throughout the policy tenure at the time of maturity if he/ she survives the maturity period.

Conclusion

While choosing an appropriate term plan, the economic value of the unpaid duties of housewives must be considered to secure the financial future of their family members. Also, choose the term plan with flexibility in terms of customising the coverage amount. Compare the quotes from trustworthy insurance companies to get appropriate coverage at an affordable cost.