Housewives or homemakers play a crucial role in the functioning of the home. The family members need to know that even if you are not an active earner in the family, your untimely death can significantly impact them.
Despite being unable to provide direct emotional support, a life insurance policy can provide direct financial support. In this situation, the concept of Housewife Term Insurance is important.
Find out more about term insurance for housewives by reading on.
What is Term Insurance for a Housewife?
HTI (Housewife Term Insurance) entails a housewife’s purchase of a term insurance policy to protect her family in the event of her untimely death. Housewife term policies provide death benefits or sums assured to your family, which you can receive in a lump sum or frequent instalments.
However, one should always pick reliable term insurance plans and check their premiums. Using a premium calculator for term plans is an easy way to find out term plan premiums.
Importance of Term Insurance for Housewife
- A term insurance policy for homemakers is necessary due to the growing number of illnesses among women, such as breast cancer and polycystic ovarian syndrome.
- A term insurance policy for homemakers can support your financial planning, which offers the nominee a guaranteed sum to cover necessary expenses.
- A tax-saving benefit may be available to you.
- Various add-ons can be added to the policy to help cover financial expenses that may arise due to a critical illness.
Benefits of Having Term Insurance for a Housewife
The following are some of the benefits of housewife term insurance.
- It Makes You Financially Secure
A homemaker can protect her family’s finances by getting term policy to pay a payout if she becomes ill. Payouts can help families deal with financial hardships and cover basic expenses in the future.
- Best Coverage at an Affordable Price
There is no need to worry about the high cost of life insurance for homemakers when you can get term insurance instead. The reason for this is that term insurance includes a death benefit at a low policy premium.
- The Benefits of Taxation
The Government of India offers many tax benefits to policyholders to encourage them to purchase life insurance. A maximum of ₹1,50,000 can be claimed as a tax benefit under Section 80C of the Income Tax Act. Furthermore, Section 10(10D) of the Income Tax Act exempts the payout offered to the nominee from taxation.
- Waiver of Premiums
Several life insurance companies offer a premium waiver. As the name implies, a premium can be waived based on the need. An accident or disability may prevent the policyholder from paying the premiums.
- Option to Purchase Additional Riders
Riders are also included in term insurance for homemakers, like other life insurance plans. Adding riders to your policy will increase coverage and provide extra benefits. Depending on the insurance company, there are different riders, but the most common are Critical Illness and Disability Riders (CIDR), Personal Accident Riders, and room rent waivers.
Are Term Plans Available to Housewives?
Investing in a term plan can protect your family financially in your absence. For this reason, buy a term insurance plan for the homemaker in your family. A housewife can purchase a term plan individually or jointly with her husband. Both partners are equally responsible for payment when they own a joint policy. The insurance benefits are paid to the surviving partner if either partner passes away. By doing so, you will be able to protect yourself and your family against any contingencies that may arise in the future.
