Term insurance is a pure protection policy that provides coverage against death. Many insurance buyers in India prefer to buy term insurance over other life insurance policies mainly because it offers high coverage at a nominal cost; the premium for term insurance plans is the lowest of any life insurance plan on the market.
Typically, earning household members purchase life insurance to protect the financial future of their family members against unforeseen risks. However, we ignore the purchase of life insurance for housewives.
Housewives may not be the earning members of the family, but they play a vital role in running the household. They take care of each member of the family, manage the monthly budget and meet everyone’s needs. They work tirelessly throughout the day without taking time off. They put in all the work without expecting any reward or return. The family often takes the housewife’s work for granted and only realizes its true value in the event of her unfortunate demise.
Benefits of Term Insurance for Housewives
· Since term insurance is a pure protection policy, it offers substantial life cover at a nominal premium. Also, most insurance companies offer special premium discounts for housewives (women).
· The sooner you buy a term insurance policy, the lower the premium will be. So, by investing in a term plan early, you’ll get coverage at a lower price for the life of the policy, which could last around 25 to 30 years.
· Most housewives attend to the needs of everyone in the family and yet ignore their own medical and health needs due to high treatment costs. However, a term life insurance policy with supplements or health riders can help them get the financial assistance they need if they are diagnosed with a serious illness.
Purchasing a housewife term insurance policy would help you gain additional tax benefits under the Income Tax Act 1961. The premium you pay for term insurance is deductible and you can reduce your overall annual tax payable. You may consult your tax or financial advisor to understand how to obtain the maximum tax benefits.
· Another important benefit of buying a term insurance policy for the housewife of your home is that it gives them peace of mind. They can rest assured that even in their absence, the family would be financially protected and able to use the death benefit to run the home without hassle.
What amount of coverage should you choose when buying a life insurance policy for housewives?
It is essential to take the time to carefully calculate the amount of coverage when buying term insurance for the housewife of your home. You can do this by identifying the various costs that you could incur in the event of the death of the housewife. However, you should be aware that according to underwriting guidelines in India, the life cover of a housewife cannot be greater than that of the working spouse.
So, investing in term insurance for housewives is essential as it would help secure the financial needs of your family in the hour of need. With life insurance coverage, you can reduce financial burden and stress.
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