Life insurance has been essentially sold to income-earning members of a family, and housewives are over-looked because there is no income to protect.
A recent study by Max Life Insurance titled, ‘India Protection Quotient’, the ownership of life insurance and term insurance was lower in females as compared to males.
“Women are an important part of financial freedom. In the same way that Jawaharlal Nehru had once said ‘If you educate a man, you educate one person. If you educate a woman, you educate a nation’, we believe that if you financially protect a woman, you protect a whole nation. Building awareness of insurance and making women participate in owning insurance will be a force multiplier and will go a long way building the financial protection of the country,” said Aalok Bhan, Director& Chief Marketing Officer, Max Life Insurance.
Having said that, a term insurance plan for a homemaker should form an essential part of the financial plan as it enhances the financial coverage of your family. As incomes are almost stagnant and lifestyle expenses are increasing, it has become important to double the financial security of your loved ones, in case anything happens to you or both of you. The term plan for your wife ensures there is no financial constraints while fulfilling your child’s needs and upbringing, during any life event.
Married couples should be future-ready and provide an extra layer of financial security around their loved ones and help dependents in sustaining their current lifestyle without any paucity of funds, child’s education, health-related issues, and more, as costs will rise with time.
To address the need of double security, many companies have now started to offer term plans to housewives that offer multiple benefits.
Here are some benefits:
1. More coverage at lesser premium: You can take a term plan for your wife with a large cover and affordable premium amount. For a 28-year-old housewife, the Max Life Online Term Plan Plus offers Rs 50 lakh term cover for just Rs 277 per month.
2. Increase protection whenever you want: You have the option to increase the sum assured in many life events such as marriage, child birth, etc.
3. Save taxes too: The premiums paid and benefits received under these policies are eligible for tax benefits under Section 80C and 10(10D), respectively, of the Income Tax Act, 1961.
It’s 2019 and homemakers shouldn’t be ignored while buying a term insurance plan. Once you decide to take a term plan, you should do a hygiene check on certain aspects.
What to check:
You should double check whether the cover amount would be sufficient for your loved ones. Consider your liabilities, habits and financial responsibilities before signing the document. Ideally, it should be at least 10-12 times your current salary.
Also, compare the claim settlement ratio, process and go for reputed insurers. By choosing a brand, you’ll ensure your wife or kids don’t have to run from pillar to post to settle claims and entail the benefits. Companies such as Max Life settles claims instantly and without any hassles of paperwork. The company settled 98.26% of the total individual death claims in FY18, and as per IRDAI, it surpassed LIC in this regard. The InstaClaim process settles death claims within one day from the claim receipt.
Term insurance is a huge responsibility you should take early in life. Make it an essential part of your financial plan and double the security net of your dependents.
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