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Term Insurance for Housewife

Housewives, also referred to as homemakers, play a role that is often not given due importance in many households, right? But what if an unfortunate event leads to the housewife's demise? It would be difficult for the family and loved ones, both emotionally and financially, right? That is exactly why term insurance for housewife is no less important than the ones taken by their male counterpart.

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TERM INSURANCE PLANS BUYING GUIDE

The Ultimate Guide to Term Insurance for a Housewife

The Ultimate Guide to Term Insurance for a Housewife
May 10, 2024

Table of Content

 

Life is surely a rollercoaster, right? There are many ups and downs, so you should be ready for them. One such unfortunate event that can rattle a family is the absence of not only male breadwinners but their equally important female counterparts, i.e., the housewives. This is where plans like the best term insurance plan for 1 crore comes into play, as their absence can lead to a variety of financial and emotional difficulties. Term insurance for housewives can provide additional financial security by covering future and current medical bills, loans, education costs, and marriage expenses. Therefore, housewife term insurance is an essential purchase for a family’s financial future.

What is term insurance for housewife?

A type of life insurance policy known as housewife term insurance guarantees a payment to the housewife's family in the event of an unfavourable incident involving the housewife. This guaranteed payout is given in exchange for the policyholder's payment of premiums on time.

Why should housewives buy term insurance?

Buying term plans is undoubtedly necessary for housewives nowadays. Considering the growing prevalence of diseases in women, including PCOD (polycystic ovarian syndrome) and breast cancer, housewives may find themselves in need of term insurance so that their families are financially secure in case of an untimely demise.

The best term insurance plan for housewife can help the nominees through the guaranteed cover amount that can assist in expenses such as education, existing loans, etc.

How to identify the best term insurance plan for housewife?

1. Make sure the cover you choose is adequate

The last thing you want to do is choose a cover that won't fit within your budget. As a result, it's crucial to pick a housewife term insurance plan that offers the required amount of money protection.

To be sure of that, it is highly recommended that you review your financial plans. Acknowledge the amount you have saved and the amount still needed. Simultaneously monitor your present expenditures and forecast your future expenditures.

Select an appropriate level of coverage in line with that. The cover amount should, in general, be three to five times the spouse's annual income.

2. Check the Claim Settlement Ratio

The Claim Settlement Ratio is a crucial consideration when buying term insurance. The claim settlement ratio is easily calculated by dividing the total number of claims received by the insurer by the number of claims that were settled. Given its high claim settlement rate, going with HDFC Life, one of the largest insurers in India, may prove to be a smart decision.

3. Keep the Term Plan Type in Mind

Return of Premium, Decreasing Term Insurance, & Increasing Term Insurance are the three types of life insurance plan for housewife that are offered when buying term insurance. You must choose the plan that best suits your needs and financial goals among these options because they differ in terms of features.

Key Features of Term Plan for Housewife

  • Financial Safety

While a housewife may not make a substantial financial contribution to the household, her contributions in other areas are indisputable. Purchasing term insurance for housewives can guarantee financial stability by offering a payout that could save a family. The settlement can assist the family in overcoming financial difficulties and covering essential future costs.

  • Pocket-friendly Premiums

Term insurance for housewives is much less expensive than a life insurance policy. This is so because death benefits are a feature of term insurance. Conversely, life insurance provides benefits for both survival and death.

  • Flexibility

One crucial component of women's term insurance is flexibility. It facilitates product customisation according to unique budgetary needs. For instance, the payouts can be received as a regular income for a predetermined period of time, the premiums can be paid regularly throughout the policy tenure or for a limited term, & the sum assured can be increased at various life milestones.

  • Tax Advantages

To incentivise people to buy term life insurance, the government provides policyholders with tax benefits. When buying term insurance for housewife, remember that they are eligible for tax benefits under Section 80C of the Income Tax Act, up to a total of Rs 1.5 lakh per year. Furthermore, the payment made to the nominee is tax-free according to Income Tax Act Section 10(10D).

  • Benefits for Children

The financial benefit of insurance coverage from a term plan for housewife can be used to secure her child's future, including higher education, marriage, and other expenses. Choosing the best policy for child planning ensures that these financial goals are achieved, providing stability and security. This helps guarantee a stable life, free from financial hardship, for her children.

Term Insurance Riders

1. Accidental Disability

If optional riders are added, accidental coverage under a housewife's term life insurance policy may be obtained. However, the policyholder can use the accidental death add-on rider to increase the death benefit in the event of an accident. In the event that an accident results in the policyholder's untimely death, the term insurance rider will supply extra money.

2. Critical Illness

If the insured is found to have a critical illness, such as cancer, the Critical Illness Rider provides an additional payout. The insurance company determines the payout frequency and amount.

Advantages of Term Insurance Plan for Housewife

1. Affordable premiums

Unlike most insurance policities, term insurance for housewives is less expensive. This is primarily because death benefits are a key focus and feature of term insurance.For the tenure chosen, term insurance does the simple yet crucial job of providing big cover amount at affordable premiums.

2. Premium waiver

Another perk that many life insurance providers offer is the waiver of premiums. This feature can, as its name implies, waive the premium in the event that it becomes necessary. Stated differently, there are situations in which the policyholder will not be required to pay the premium. This is only relevant when an accident or disability prevents the policyholder from being able to pay the premium.

3. Tax benefits

Buying term insurance for housewife brings with itself the eligibility for income tax benefits under Section 80C of the Income Tax Act, up to a total of Rs 1.5 lakh per financial year. Also, the payment made to the nominee is tax-free according to the Income Tax Act Section 10(10D).

4. Financial security

Even if a housewife may not make a big financial contribution to a household, her contributions in other areas are too big to be undermined. Purchasing term insurance for housewife can guarantee financial stability by offering a payout that could help the family’s financial future.

5. Additional benefits

One of the most crucial aspects of term insurance for a housewife is the availability of additional benefits of term insurance like optional riders. Add-on riders come in various forms. For instance, a serious illness, an accident, etc.

6. Online availability

Thanks to technological advancements, a person can now access various term insurance policies, evaluate their features, and select the best online term plan suitable for a housewife. Additionally, buying term insurance, paying the premium, submitting a claim, and other procedures are very easy and economical when done through one of the biggest insurers, like HDFC Life.

Types of Term Insurance for Housewife

1. The Return of Premium Plan

If the insured housewife lives through the policy term, the term insurance with return of premium reimburses the policyholder for their paid premiums.

2. Increasing term life insurance for a housewife

This kind of plan is perfect for policyholders who want to, or who would like to, increase their policy coverage as their income increases over the tenure of the policy in coming years.

3. Reducing term life insurance for housewife

This kind of term life insurance for housewife provides a guaranteed cover amount that keeps falling at a predetermined rate. The reason behind this kind of term life insurance plan is that as people age, their liabilities diminish, and a larger payout becomes less necessary.

Why should you think about getting a term insurance plan for a housewife?

Buying term plans as a housewife is undoubtedly a necessity nowadays. Given the growing prevalence of PCOD (polycystic ovarian syndrome), breast cancer, and other diseases in women, having term insurance can help housewives get their family's future financially secured in case of their untimely demise.

Reasons to get a term life insurance policy as housewife

A housewife's term insurance policy can help her family and loved ones chosen as nominees get through the guaranteed coverage amount that can assist in ongoing or future expenses like children's education, husband's existing loans, etc.

Besides the financial, security for family, term insurance for houswife also offers other benefits such as affordable premiums, income tax benefits, online purchase and claim process, premium waiver facility,etc.

Process to buy term insurance plan for housewife from HDFC Life

1. Housewives can benefit greatly from buying a term insurance plan from HDFC Life. A term insurance plan provides financial protection to the family in the event of the housewife’s untimely death. With HDFC Life you can select the best term insurance plan for housewife from a variety of plans that provide a variety of coverage options that are easy to understand.

2. The process for buying a term insurance plan for housewife from HDFC Life is simple and straightforward. First, the housewife must decide the amount of coverage she needs. This can be based on her current financial situation and her family’s future financial needs. 

3. The next step is to compare the different plans available from HDFC Life. Once she has chosen the plan that best meets her needs, she can fill out the online application form from HDFC Life. The application process requires basic personal information such as name, address, and date of birth. The housewife will also need to provide information regarding her health, lifestyle, and any existing medical conditions. HDFC Life will use this information to assess the risk and determine the premium.

4. Once the application is filled out and submitted, HDFC Life will review the application and provide a quote. The housewife can then decide if she wants to proceed with the plan or not. If she decides to proceed, she will need to pay the premium in order to activate the plan. Once the premium is paid, the housewife will receive a confirmation of the policy. She can then start to enjoy the benefits of the plan, such as peace of mind, financial protection, and tax savings. It is important to remember that term plan for housewife is renewable, so the housewife can continue to benefit from the plan for as long as she needs it. 

5. HDFC Life also provides excellent customer service, so any questions or concerns can be easily addressed. By following the process outlined above, housewives can easily purchase a term insurance plan from HDFC Life and enjoy the security and peace of mind it provides.

Should Housewives Get Term Insurance Plans?

These days, women deal with a number of health issues, such as PCOD, breast cancer, and even an unfortunate death during childbirth. It is now more crucial than ever for them to participate in long-term financial planning because of this, which is why term insurance for housewife is necessary. One of the most important aspects of a family’s financial planning process should be a term insurance policy.

Term insurance for housewives offers several advantages, such as tax savings, the ability to add riders to the policy that can help with the cost of covering serious illnesses, and guaranteed financial support for designated beneficiaries to cover necessary expenses.

Things to Consider While Choosing Term Insurance

Before selecting term insurance for a housewife, ensure to do careful consideration of these factors:

1. Adequate Cover Amount

Assessing the family's financial needs and determining the necessary amount assured are crucial. The family may take into account debt and liabilities, as well as future financial objectives like retirement and a child's education. If the housewife passes away suddenly, the payout ought to be enough to handle the financial crisis.

2. Current Health Condition

The family can decide if a health rider is necessary by taking into account the housewife's health and her family's medical history.

3. Cost-effectiveness

The family can determine the term insurance premium and its affordability by taking into account the present and future expenses of the family, as well as the required policy term and the sum assured. The term insurance calculator tool for housewife helps you choose an affordable premium by taking into account your family's financial needs.

4. Ratio of Claim Settlement

Determining the financial benefits at the appropriate time requires taking the insurance provider's reputation into account. To assess the insurance companies' level of customer service and claim resolution effectiveness, compare their claim settlement ratios.

Conclusion

Its a no-brainer that term insurance for housewives is a crucial financial decision, especially at a time when the rising medical and living costs in India. Moreover, the changing needs of a family over the years also necessitate the need to have adequate term insurance for not only male breadwinners but also housewives.

FAQs on Term Insurance for Housewife

Q. Can a housewife get term insurance?

Housewives can obtain term insurance for mental and financial stability. It is reasonably priced with low premiums, safeguards family in the event of illness or death, and offers coverage for the chosen tenure, besides the tax benefits.

Q. Why do housewives need term insurance?

In their unfortunate absence, a housewife's family can get financially protected by a term insurance plan. In the event of the housewife's untimely death, it gives the family a lump sum payment that can be used to settle debts, pay bills, or put money towards the children’s safe future.

Q. Is term insurance for a housewife expensive?

It depends on the coverage and the term length. Generally, term insurance for housewife is not expensive and can be more affordable than a permanent policy. The premiums can vary depending on the insurer and the housewife's current health and age.

Q. Can housewives buy joint term insurance policies with their spouses?

The term insurance plan for housewife can be bought jointly with their spouses. Joint term insurance is designed to provide financial protection for both partners. It is usually cheaper than buying two individual policies, as the premiums are shared between the two. It also offers tax benefits.

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

If someone outlives her term insurance plan for housewife, then the policy will expire and she will no longer receive any benefits from the plan. However, the housewife can renew the policy and purchase another term plan for housewife if necessary.

Q. Can housewives add riders to their term insurance policies?

Yes, housewives can add riders to their term plans for housewife. Riders are additional benefits that can be added to the policy for a small fee. These riders can provide additional coverage for accidental death, disability, and critical illness. Additionally, riders can also provide coverage for additional family members.

Q. Is term insurance for housewives taxable?

Generally, term insurance for housewife is not taxable. Premium payments are not taxable and any benefits received from the policy are also not taxable. However, if the policy is part of a larger life insurance package, then the premiums and benefits may be taxable.

Q. What is the age limit of buying term insurance for housewives?

The age limit for buying term plan for housewife usually depends on the policy and the insurance company. Generally, the age limit is between 18 and 65 years old. It is also important to note that some policies may have higher or lower age limits. It is best to check with the insurance company for details.

Q. How do you choose the best term insurance plan for a housewife?

Based on the family's financial needs, the best term insurance plan for a housewife can be selected by keeping the following points in mind:

  • Calculate the necessary cover amount in terms of present and future financial obligations, loans, and liabilities.
  • To decide whether a rider is necessary, take into account the housewife's health and the medical history of the family.
  • Determine the reasonable premium by taking into account the necessary policy tenure and current financial obligations.
  • To find the best term insurance for housewife, compare the costs and features of term insurance plans. Do not forget to check the term insurance plans of one of India’s biggest insurers, HDFC Life.

Q. Is it good to take term insurance for wife?

Definitely, just like their male counterparts, housewives should have a separate term insurance plan, which, in case of their untimely demise, can prevent the family's financial future from being jeopardized. The cover amount could help the family manage its existing expenses, liabilities, etc. Similarly, it is also advisable to consider term insurance for parents to ensure financial stability in the event of their passing.

Q. Can a non-salaried person purchase term insurance?

It is not possible to purchase a term insurance policy without providing a legitimate proof of income. This is necessary since the insurance provider will determine the premium amount and the sum assured based on the buyer's ability to pay the premium. The income proof can be filed as an ITR filing document by non-salaried persons.

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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