Term Insurance for Housewives: Why Self-Employed Husbands Must Include It
When it comes to organising the house and keeping the family together, housewives are at the centre of every plan. However, the same does not apply to financial planning or even a financial safety net. More often than not, financial security is mostly associated with the husband, and despite housewives running the house with daily chores, they are left behind.
Over the years, both husbands and wives have realised the importance of prioritising housewives’ financial safety for various reasons, whether it is for self-care or building a safety net in the absence of the husband. Purchasing term insurance is a smart and efficient way of financial planning for housewives. Let’s learn more about term insurance for housewives and what self-employed husbands can do.
What is the Term Insurance?
Term insurance is a type of life insurance plan where the insurer promises to provide death benefits to the beneficiary in case of the untimely demise of the insured. As the name suggests, a term insurance plan is designed to provide a financial safety net for a specific term, and typically, the insured gets death benefits only.
In addition to death benefits, many term insurance plans offer extended coverage, like critical illness coverage, disability coverage, etc.
Empowering Housewives with Term Insurance
In today’s time, financial independence has become a necessity. However, housewives continue to find themselves financially dependent on their spouses. This is why small steps like purchasing term insurance become crucial. Let’s decode the importance of term insurance for housewives:
- Financial Stability
A term insurance plan ensures financial stability not just for the housewife but also for the entire family. Even when the primary breadwinner is not around, term insurance steps in to ensure financial protection. With the policy payout, the monthly expenses that housewives have can be continued. For example, a 75-lakh term insurance plan can help take care of major life expenses like retirement, children’s education, etc.
- Affordable Premiums
Purchasing term insurance is a step taken towards protecting the needs of the insured and their family. Now imagine getting all the benefits and that too at affordable premiums. This is what term insurance for housewives offers. Many insurance companies are offering comparatively cheaper premiums and personalised plans.
Did You Know? A recent survey revealed that two out of five housewives are opting for term insurance and riders like critical illness?1
- Critical Illness Coverage
Housewives, out of love and care towards their family members, often tend to overlook their own health, bringing them to the forefront of many health challenges. In today’s time, when medical inflation is at an all-time high, term insurance with riders that cover the cost of medical bills for critical illness treatment is a necessity.
Did you know? It is estimated that around 38% of housewives are at a major risk of facing chronic illnesses. 2
- Tenure and Premium Flexibility
When it comes to managing expenses for household needs, medical bills, education and marriage expenses, housewives typically have a better understanding. Empowered with financial security through term insurance, housewives can make decisions that best align with the family’s financial planning.
- Tax Benefits
To promote purchasing plans like term insurance, the government has introduced several appealing tax benefits. So, in addition to safeguarding the needs of their wives, self-employed husbands can also take advantage of impressive tax benefits. Take a look at the tax benefits with term insurance:
- Under section 80C of the Income Tax Act, policyholders can claim up to ₹ 1.5 lakhs in tax benefits for premiums paid towards term insurance.
- Under Section 10(10D) of the Income Tax Act, death benefits paid to the beneficiary are tax-free.
- Under Section 80D of the Income Tax Act, policyholders can claim tax benefits upto ₹25,000 if they have opted for health-related riders.
Over to You
Purchasing term insurance as a self-employed husband is a necessity in today’s time to secure the well-being of your wife. It not only offers financial freedom but also promises emotional stability in times of need. Term insurance comes in as a helping hand to offer death benefits that keep the family afloat even if the sole breadwinner of the house is not around.
Remember that term insurance comes with a flexible sum assured and tenure that you must evaluate carefully before purchasing.