Housewives or homemakers are the foundation of their families. But if they are not around, then it can cause their family to have a lot of problems. For example, it can lead to financial problems and even affect their kid's education. A term insurance policy can help solve this problem. In this post, we will learn about term insurance policy for housewives and try to understand its importance.

What Is a Term Insurance Plan for Housewives?

Housewife term insurance is an insurance policy that ensures a lump sum payment to a housewife's family in case of their death. It provides peace of mind to them as well as their families. They know their families will not have to compromise on their dreams or aspirations when they are no longer with them.

A Term Insurance Policy for a Housewife: Why It Is a Must?

There are several reasons why buying a term insurance policyfor a housewife can work out well:

• Financial protection- It helps their families manage their daily expenses and EMIs and ensure they can fulfil their dreams/goals.
• Medical security– The treatment of severe diseases like PCOS (polycystic ovarian syndrome), breast cancer, etc., is very expensive. Insurers such as Axis Max Life Insurance offer health-related riders with their term insurance plans. These riders provide a payout when a housewife is diagnosed with a serious medical condition.

What Are Some of the Key Features of Term Insurance for Housewives?

These plans come with many amazing features like:

1. Affordable Premiums

Term insurance for a housewife doesn’t burn a hole in your pocket. In comparison to regular insurance plans, these plans are more affordable. Why? Because the payout is made only upon the death of the policyholder. However, general insurance policies provide benefits for survival as well as death. As a result, the premium of regular plans is much higher than that of term insurance plans. 

2. Freedom to Customise the Plan

Term insurance plans offer policyholders flexibility in customising the policy as per their requirements. For example, you can opt for flexible premium payment terms and add riders to enhance your coverage.

3. Tax Advantages

Term insurance for a housewife qualifies for tax benefits as per Section 80C of the Income Tax Act. Apart from this, the payment made to the nominee is also tax-free under Section 10(10D) of the Income Tax Act.

4. Add-Ons

You can add optional riders to the term insurance plan to increase its coverage. For example, you can add critical illnesses that provide extra payouts when the policyholder is diagnosed with a serious medical condition like cancer.

Cracking the Code: Choosing the Perfect Term Insurance for Housewife

There are certain factors that you must consider before purchasing a term insurance policy for housewives to avoid surprises later like:

1. Choose Right Coverage

When buying a term insurance policy, always pick a plan that matches your needs and budget. This will ensure you don’t end up buying a plan that does not match your requirements. 

2. Check the Claim Settlement Ratio

Always check the claim settlement ratio of the insurer before buying a term insurance policy. This ratio is calculated by dividing the total number of settled claims by the total number of claims received by the company. The higher the claim settlement ratio, the better it would be for you.

3. Choose the Right Plan

There are three main types of term life insurance plans for housewives:

• Return of Premium- In this plan, you get the premium back if the policyholder survives the term of the insurance.
• Decreasing Term- In this plan, the coverage amount will be reduced with the passage of time.
• Increasing Term- The speciality of this plan is that its coverage grows as the policyholder's income grows. This is also linked to the rising inflation. 

Conclusion

Term insurance for a housewife is very important. These insurance plans can provide you and your family peace of mind and financial security in time of need. But make sure you pick the plan wisely. Apart from this, make sure you check the claim settlement ratio of the insurer and the terms and conditions of the insurance plan. This will ensure that you don't end up buying the wrong term insurance policy. So, what are you waiting for? Get a term insurance plan today and secure your family's future. 

*Standard T&C Apply

**The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

***Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

****Claims are subject to terms and conditions set forth under the term insurance policy.

*****Tax benefit is subject to change as per tax laws.