A housewife is a multi-tasker who takes care of the household, kids, and elderly parents. She also cooks food and makes sure that everything is organized in the home. Sadly, the society tends us undervalue the hard work and time that a housewife devotes towards her home. However, if an unfortunate event leads to your wife’s sudden absence, it can be emotionally disturbing and ruin your peace of mind.
Duties like doing daily chores, managing groceries, and looking after your children’s studies and parents’ requirements will take a toll on you. Additionally, such a situation will hamper your finances, as you will have to hire a cook and maid for other jobs, like cleaning the home and sweeping the floor. So, before you dismiss the idea of investing in a term plan for a housewife, you must value the tasks executed by her along with her overall contribution to the family. It will help you to ascertain why it is worthy to have life insurance for a housewife.
There are very few insurers selling term plans for housewives. So, many people in other instruments, such as unit-linked insurance plans (ULIPs) and endowment plans, for their wives. However, you also need to invest in a term plan for your wife. A term insurance plan meaningis a policy that insures the life of a policyholder for a particular duration. Investing in a term plan for your wife comes with many advantages.
Benefits of term insurance for housewife
Here are a few plus points of buying a term life insurancepolicy for your wife:
- Tax benefits
As perSection 80C of the Income Tax Act, 1961, you can claim a tax deduction up to INR 1.5 lakh for the premium that you pay for your wife’s term plan.Moreover, the death benefit that you receive in case of your wife’s tragic absence is tax-free under Section 10(10D) of the Act.
- Flexibility in receiving the death benefit
You can claim the death benefit given by the insurer as a lump sum or monthly payouts. It is advisable to choose the monthly payout facility so that you can manage the household expenses in a better way. Besides this, you will not have to worry about managing such a huge sum at once. This alternative will prevent you from spending the money freely.
- Riders
You can also opt for riders like critical illness, terminal illness, accidental disability, accidental death benefit, and the waiver of premium. You can plan the riders based on your wife’s needs. Though you will have to pay a supplementary charge for the riders, they are worth the money. Riders widen the scope of your term plan. For instance, if your wife gets diagnosed with a critical ailment, she will receive a substantial amount for treating the illness and managing the day-to-day costs. This sum is over and above the term plan’s sum assured.
What sum assured should you select?
Now when you have considered buying a term life insurance for your wife, it is vital to ascertain the right sum assured. If your annual income is around 25 lakh, then it is advisable to buy a term plan for your wife with a sum assured ranging between INR 8 lakh to INR 10 lakh.Here, the life cover value can be less, as you are not financially dependent on your wife. You can use a term plan premium calculatorto calculate the amount you will need to pay for a particular sum assured.
A wife works extremely hard and saves a lot of money. Unfortunately, all these efforts go unnoticed. The family realizes the value of a housewife when she is absent.
You need to be careful while investing in a term plan for your wife. As life is uncertain, a term plan for your housewife should be a part of your financial portfolio. You can compare the prices of various insurers with the help of a term plan premium calculator and pick an appropriate policy.