In the past, life insurance was not a necessity for housewives. They were not considered a breadwinner and often stayed at home to take care of the children. With time, society has changed and now women are expected to have an education and contribute to the family income.
Many people think that housewives don't need a life insurance policy because they don't work, or because they're not financially independent. But, life insurance is never just about the person who signs up for it. It's also about the family and loved ones left behind when something happens.
Housewives may not be breadwinners, but they often play a major role in their families lives with childcare and other responsibilities. Now, women who are housewives can get a life insurance policy that will cover them in case they die while taking care of their children or spouse. In this article, we will talk about why life insurance is necessary for a housewife and how can it benefit her, and how much amount of coverage they need in detail.
Why Need to Consider a Life Insurance Policy as a Housewife?
A life insurance policy is an important consideration for every woman. The reason is that they are the primary caretakers of their families. This means that they are more likely to take care of the children and elderly relatives at home as well as take care of the household chores. In addition, housewives also have a lot less income than their working counterparts.
In case something happens to the housewife, her family would be left without any source of income and would have to do everything on their own. A life insurance policy can help them in such a situation by providing some additional income in case she leaves this world prematurely or by taking care of her funeral expenses if she dies suddenly or is too young.
Below are the reasons to get a life insurance policy as a housewife
- Provides financial protection for her and her family
- Gives higher coverage at a lower premium
- Enhance the coverage by adding riders
- Helps to build a financial corpus
- Comes with joint cover benefits
- Offers tax benefits
Benefits of Life Insurance for Housewife
A housewife can get life insurance to provide for her family in case she dies. This will help the family with the financial responsibility of raising kids and maintaining a household. Life insurance is an important financial tool that can provide peace of mind for both the housewife and her family members. There are many benefits of buying life insurance as a housewife.
- Family Support: Life insurance can help provide for the needs of the family if the housewife becomes disabled or dies.
- Peace of Mind: Having life insurance can provide peace of mind for a housewife who may worry about her family's future without her.
- Income Replacement: The housewife will be able to replace her lost income if she dies by using life insurance proceeds.
- Budgeting: If a woman is in debt, she can use life insurance as a way to pay off those debts by making monthly payments on the premiums.
- Additional Riders: Life insurance for housewives comes with the feature of riders. Adding riders with a life insurance plan with spouse cover is one lucrative reason to invest in a life insurance policy for housewives.
- Tax Exemption: Get tax benefits under Section 80C, Section 80D, and Section 10(10D) of the Income Tax Act, 1961.
What Kind of Policy Should Get as a Housewife?
Here is a list of options that can be considered while choosing a life insurance policy for a housewife.
- Term Life Insurance: A term life insurance policy is a type of life insurance that covers you for a certain period. This type of policy is also known as temporary life insurance because it does not last for your entire lifetime. Term life insurance policy for housewives is a type of policy that provides life insurance coverage for the insured person and their spouse. The policy usually covers the insured person's death or disability, but can also cover their spouse in case of death or disability. The benefits of this type of plan are that it is cheaper than other types of policies, and it has a fixed term.
- Whole Life Insurance: The whole life insurance policy is a policy that offers coverage for the entire lifetime of the insured. The policyholder pays a single premium to cover their entire life. The advantages of this type of life insurance are that it provides coverage for the entire lifetime and it does not have any age limitations. It also offers guaranteed cash values and death benefits, which cannot be found in other types of policies.
- Unit Linked Insurance Policy: A Unit Linked Insurance Policy is a term insurance policy with Insurance coverage and Investment. A unit-linked life insurance policy can help protect a housewife’s family in such situations by providing them with an income even if she is unable to do so herself. The policy will ensure that the wife does not have to worry about finances when she needs them most.
- Endowment Life Insurance: An endowment life insurance (ELI) is an investment product that guarantees an income for life. It offers protection against inflation and provides tax-free cash at retirement which can be used as investments or savings. It also offers a guaranteed rate of return on investment which may be higher than other products available
- Money Back Life Insurance: Life insurance is designed to provide financial protection to a housewife's family in case she dies. The housewife is provided with a percentage of the sum assured at uniform intervals within the policy term-end. This regular income helps fulfill her long-term aspirations and goals. Moreover, if she survives the policy term-end, she can enjoy the maturity benefits with the remaining amount from the aggregate and the accumulated bonus.
Top 5 Best Life Insurance Plans for Housewife
| Plan Name |
Age Limit |
Policy Term |
Sum Assured |
Premium Payment Mode |
Premium (Per Annum) |
| HDFC Life Smart Woman Plan |
Minimum 18 years to Maximum 45 years |
Minimum 8 years to Maximum 12 years |
10x - 40x annualized premium |
Annually, half-yearly, monthly, and quarterly |
10245/- |
| SBI Life Smart Women Advantage Plan |
Minimum 18 years to Maximum 50 years |
10 years, 15 years |
Minimum Rs.2 Lakhs to Maximum Rs. 10 Lakh |
Annually, half-yearly, monthly, and quarterly |
13547/- |
| Bajaj Allianz iSecure Plan |
Minimum 18 years to Maximum 65 years |
Minimum 10 years and Maximum 85 years |
Minimum Rs.25 Lacs and Maximum Rs.50 Lacs |
Single, half-yearly, monthly, and quarterly |
12457/- |
| PNB Metlife Mera Term Plan |
Minimum 18 years to Maximum 65 years |
10 years |
Rs. 25 lakhs |
Yearly, half-yearly, quarterly, and monthly |
13457/- |
| AEGON Life’s Jeevan Riddhi Insurance Plan |
Minimum 18 years to Maximum 55 years |
10 years to 20 years |
Rs. 1 Lakhs |
Annually, half-yearly, monthly, and quarterly |
12457/- |
*Premiums may vary as per the data entered by you. Compare quotes to get the exact value*
How to Choose Best Life Insurance for Housewife
Choosing the best life insurance for housewives is one of the most important decisions that they make. Housewives are usually not employed and hence do not have any income of their own. Hence, they need to save up for their future as well as that of their children. Choosing a policy that will provide them with a lump sum amount in case of death can be a good idea. But you need to consider various factors before making a decision. Below are the things to consider for getting the best life insurance plan for a housewife.
- Compare different types of life insurance policies
- Choose an affordable plan by comparing the quotes from different insurers
- Consider age as a factor. Age plays a significant role while getting the right life insurance plan.
- Choose a plan with extensive coverage
- Check premiums of different insurers online and offline
- Choose a plan with a high policy term
- Always check if the sum assured amount is sufficient to secure your family members
- Consider the child’s education plans, loans, and liabilities to decide the amount of coverage
- Choose the best insurer which has a high claim settlement ratio
Conclusion
Life insurance policies are one of the most important financial decisions that a person can make. It is a decision that will have an impact on their loved ones. The life insurance policy also provides a death benefit to the beneficiaries in case of an unfortunate event. Life insurance gives the best protection for the housewife and her family. A high life cover can also help children fulfill their objectives. So, go ahead with the right life insurance plan if your family members are majorly dependent on you. Compare life insurance quotes online at PolicyBachat to get the best life insurance policy for housewives.