Mrs. Rauf is a homemaker. Her job is to stay at home and keep things in order. While her job is to take care of the whole household, her husband, Mr. Rauf works in an MNC to ensure that there are adequate funds for the family. This case is true not just for the Rauf family but so many households in India.
For the Rauf family, things have been functioning smoothly. However, what would happen if Mrs. Rauf expired? Besides an emotional loss, there would be even a massive financial loss for Mr. Rauf as he would require dividing his time between his professional and personal life (which would be taking care of Mrs. Rauf’s duties). This could affect his ability to earn his full potential via professional means.
In such a situation,term insurance plans can come in handy. If Mrs. Rauf purchased a term insurance plan, then upon her demise, there would be sufficient funds to, say, hire a nanny for kids, hire a maid to take care of the dishes, food, and cleaning and other essential tasks.
Why is buying a term insurance plan important for a homemaker?
When a home maker avails a term insurance, the financial cover of a family enhances. As income tend to stagnate, it becomes crucial to have a pragmatic financial backup for your dependents so that funds do not get into your family’s way for mitigating a goal. Holding a term policy for your wife would ensure there’s zero financial constraint when it is about meeting your kids’ needs. Having an adequate term insurance plan takes care of their education, upbringing, wedding, etc. Also, most term policieshave a disability benefit attached.So, if any unanticipated accident leaves your wife disabled, a suitable term plan can take good care of all your ever-increasing financial requirements that might follow.
However, before availing a term insurance plan for homemaker, checking several things are crucial. Factor in parameters like your family’s daily expenditure, children education plans, liabilities, and loans etc. for computing the assurance amount on term insurance for homemakers.
What is the term insurance benefits for a homemaker?
Financial security –
Having a term insurance plan for homemaker will not just offer additional financial safety but also protect your dependents for the unexpected future.
Emergency preparedness –
Even while your wife may not be contributing towards the home financially, she manages various responsibilities and activities of the home, which after her demise, would create financial burden upon you. However, with term insurance plan, you can ensure that the life of your wife is secure, and your kids will not suffer in the case of any unanticipated event. Additionally, your wife’s insurance plan can support long term and instant requirements of the family dependents, regardless of your status of employment.
While there is no restriction on term insurance age limit, it is advised to buy an insurance plan at a younger age as it would provide better cover at lower premiums due to the presence of lower health risk.
Economical choice –
Term plan is an economical insurance plan as you can buy adequate term policy for your wife at affordable premiums. Additionally, few term insurance providers may permit you to enhance your sum assured in distinct life events like childbirth.
Savings on tax benefits –
Term plan comes with tax benefits under Section 80 C. As income tax act allow you to avail additional tax deduction if you buy a term insurance for your dependent parents, kids, or spouse, you can save on your taxes while providing financial security to your wife and family.
There’s no bigger myth than the fact that homemakers add zero financial value to a home. A home without a homemaker may propel earning members to employ maids, nannies, caretakers etc., to ensure the home is in order. While it is tough to estimate the financial contribution of a homemaker, it is possible for you to compensate her by providing a life security in the form of term insurance. Doing so would not just allow homemakers to fret less about the upcoming future but also lessen your financial burden.
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