Housewives are the backbones of society. They take care of the household, manage the budget, take care of family members, and they do all of this expecting nothing in return. Without the care and concern of a housewife, it would be hard to manage the household. That is why it is crucial to protect housewives with a suitable term insurance policy.

What is a term insurance for a housewife?

The housewife has many responsibilities. Aside from taking care of the household and the daily activities, they are also important for the different lives in the home. With no source of stable income, the housewives depend on the primary wage earner. This can be a little frustrating as well as uncertain when planning future finances.

In the event of the death of a spouse, the housewife may be left penniless without a useful life insurance plan. On the other hand, if the housewife passes away, chaos ensues all over the house. That is why it is so important to purchase suitable term insurance for housewife.

A term insurance for housewife ensures that during the policy tenure, if the policyholder passes away, then the beneficiaries receive the sum assured as death benefit. This is an important step to guarantee that your loved ones will be cared for even after your demise.

Term insurance plans, in general, are very affordable and flexible. A term insurance for housewife can be for 10 to 100 years, with a coverage of 30 lakhs to 10 crores, depending on the family’s income versus expense ratio. The premiums for term insurance for housewife are relatively low and affordable. Therefore, you can purchase a policy with a little financial planning.

A term insurance for housewife needs to adequately budget for all of their responsibilities. From children’s education, monthly household expenses, to planning their family’s future, the housewife would have to make all those financial decisions.

Is 1 crore term insurance for housewife sufficient?

A term insurance policy allows you to purchase a life insurance plan with a very high sum assured for a flexible period of 10 to 100 years at low rates of premium. This makes them a suitable option for housewives.

Let’s assume you purchase a 1 crore term Insurance for housewife with 30 years of coverage. If the spouse passes away anytime during these 30 years, the housewife will receive INR 1 crore term insurance claim settlement. Depending on the type of term insurance policy, the death benefit of 1 crore term insurance may increase or decrease. The value of the 1 crore term insurance will also decrease due to the rate of inflation.

Now assuming that the spouse meets an untimely demise in the next 20 years, the terms of the 1 crore term insurance policy will be fulfilled. The beneficiaries of the policy would receive INR 1 crore as claim settlement. It would then become the responsibility of the housewife to plan future finances without a clear picture of income with only the benefits of the 1 crore term insurance policy.

The budgeting for the 1 crore term insurancefor housewives would have to accommodate the following.:

• Outstanding debts and liabilities such as home loans, car loans, insurance plans, and mortgages.
• Planning for children’s higher education.
• Financial planning to determine a source of regular income.
• Planning for future life stages such as retirement, a child’s marriage and grandchildren’s well-being, if applicable.
• Paying property taxes, business taxes and other related expenses.
• Preparing for emergencies, both medical and personal.

The housewife would have to accommodate the expenses of all the factors listed above with the 1 crore term insurance settlement plan. When choosing the sum assured, you need to consider whether INR 1 crore would be enough for the housewife to take care of the necessary expenses.

If the sum assured seems too low, you can use a term insurance calculator to figure out a higher sum assured for an affordable premium. On the other hand, if the premium seems too high for 1 crore term insurance, then you can also reduce the sum assured to reduce your investment.

Conclusion.

Term insurance for housewife is an essential part of financial planning, especially for budding families. The housewife knows the income versus expense ratio in the household, which is why it is also important to consult their annual financial plan.

Not only do housewives take care of the budget and the household, in general, but they can also assist you in determining a suitable term insurance policy with adequate coverage to take care of all your dependents. If you purchase a 30 lakh term insurance, 1 crore term insurance or a 10 crore term insurance policy, the housewife will need to find a way to accommodate all the necessary expenses within that budget in the event of your untimely demise.