In the realm of financial planning and security, term insurance plays a crucial role in ensuring that loved ones are financially protected in the event of an unforeseen tragedy. While many often associates term insurance with the primary breadwinner of the family, it is equally important for housewives to have coverage. The financial contributions and responsibilities undertaken by housewives are invaluable, and securing their financial well-being is paramount. In this article, we will explore the key considerations for selecting the best term insurance plan for housewives.
Importance of Term Insurance for Housewives
Housewives are the backbone of many households, managing various responsibilities such as caregiving, household chores, and budgeting. While they may not have an income in the traditional sense, the value of their work is immeasurable. In the unfortunate event of a housewife’s demise, the financial burden on the family can be significant. Term insurance for housewives ensures that the family is not only emotionally supported but also financially secure.
What is Term Insurance for Housewives?
Term insurance for housewives is a sort of life insurance product that guarantees a guaranteed reimbursement to the housewife’s family in the case of an unfortunate event with the housewife. This guaranteed payout is based on the policyholder’s premium payment.
Why Do Housewives Need to Purchase Term Insurance?
It is critical to understand why housewives need term insurance to secure their financial security and the well-being of their families.
Reduced premium prices
Term insurance for housewives provides adequate financial protection for their loved ones in unfortunate circumstances. Term insurance rates are frequently less expensive than other types of life insurance contracts. Because of this accessibility, housewives can obtain excellent coverage at a reasonable price. Furthermore, some insurance companies offer special premium discounts to female customers, making it even more reasonable for them.
Investment and Savings-
Women can use insurance to save and invest, with many choices available. They can choose money-back plans, endowment plans, or unit-linked insurance plans (ULIPs), which have the potential to grow their savings over time. These regulations allow housewives to save money based on their individual financial needs and ambitions.
Funds for Key Future Events
Certain term life insurance policies that include survival bonuses pay out if the insured survives the policy period. This feature can be quite beneficial because it provides funds for important life events such as family vacations, children’s education, weddings, and more. The inclusion of a money-back guarantee to life insurance may suit the needs of customers seeking annual payouts.
Joint Life Coverage
A joint life insurance policy gives the husbands and wives equal ownership of the policy. If either partner dies, the life insurance benefits are transferred to the surviving spouse. Both partners are comfortable with this arrangement, which also ensures the family’s financial security in the event of unforeseen events.
Additional Benefits:
Many term insurance plans have riders that provide benefits in addition to life insurance coverage. These add-ons may protect against critical illness, permanent disability, and accidental death. These policy riders provide extra security and financial support during difficult times.
A Guide To Buying Online Term Insurance
Benefits of Spouse Term Insurance Plans
The following are the advantages of acquiring term insurance policies for couples:
Joint term insurance: programmes are more cost-effective than individual term plans. As a result, if you purchase a spouse term insurance plan, you may be able to pay a lower price.
Comprehensive Coverage: Policyholders benefit from improved coverage under these term life insurance plans. To begin, you can insure yourself and your spouse under the same plan for a low premium. Second, policyholders can add riders like as critical illness benefit riders, accidental death benefit riders, and others to get comprehensive coverage.
Waiver Benefit Premium: Policyholders of the spouse term insurance plan are entitled to a waiver benefit premium. This means that if one policyholder dies while the policy is active, another will get an assured death benefit in the form of a lump payment. Furthermore, a term insurance provider will waive any future premiums you may have to pay for your policy.
Secure Future for Children: If the couple dies, the policy’s nominee or beneficiary receives a death benefit. This nominee could be your dependent children, who may face financial difficulties following your death. As a result, it is prudent to purchase spouse-term insurance in order to financially protect your children.
Tax Advantages: Term insurance contracts for couples offer tax breaks under Sections 80C and 10 (10D) of the Income Tax Act of 1961. As a result, acquiring a joint life insurance plan can help you achieve two goals: financial stability and tax savings.
5 Questions To Ask Before Buying A Life Insurance Plan
Here are5 Best Insurance Plans for housewives-
HDFC Life Click 2 Protect Super:
HDFC Click 2 Protect Super is a comprehensive term insurance plan crafted to safeguard the financial well-being of policyholders and their loved ones. As a term insurance policy, its primary focus is on providing a lump sum benefit to the nominee in the event of the insured’s untimely death during the policy term.
What Are HDFC Life Click 2 Protect Super Plan’s Key Features?
The following are the main features of HDFC Life Click 2 Protect Super Plan
- It offers your family complete financial security;
- you can choose from three plan options to choose a cover that best suits your needs: Life, Life Plus, and Life Goal;
- you can receive all of your premium money back upon survival until maturity along with the Return of Premium (ROP) option.
- Get your entire premium amount refunded if you survive to maturity along with the Return of Premium (ROP) option.
- If you die accidentally during the policy’s term, an additional amount is paid (available under the Life Plus option).
- If you are diagnosed with one of the listed terminal illnesses or ailments, you can receive an accelerated death benefit up to the age of 80 (available under the Life and Life Plus option).
- You can choose to increase the death benefit option up to 200 percent in the Life option.
- The Life Goal option allows you to modify your death benefit to suit your needs.
- The WOP Disability option allows you to waive premiums in the event of a total and permanent disability.
- The Life and Life Plus option allows you to choose additional coverage for your spouse. Finally, you can choose to receive your death benefit in instalments.
HDFC Life Click 2 Protect Super Benefits:
| Feature | Description |
| Financial Protection: | Provides a lump sum payout to your loved ones in case of your unfortunate demise during the policy term, safeguarding their financial well-being. |
| Coverage Options: | Offers various coverage options like Life Option, Life Plus Option, and Income Option to suit your specific needs and budget. |
| Flexibility: | Allows you to choose flexible policy terms like policy term, sum assured, and premium payment mode to align with your life stage and income. |
| Additional Riders: | Enhance your coverage with optional riders like Accidental Death Benefit and Critical Illness Benefit for broader protection. |
| Accelerated Death Benefit: | Provides access to a portion of the sum assured upon diagnosis of a specified terminal illness, helping manage medical expenses. |
| Return of Premium (ROP) Option: | Get all your paid premiums back if you survive the policy term, adding an element of savings to your protection. |
| Waiver of Premium: | Exempts you from future premium payments upon diagnosis of a critical illness or total and permanent disability (with riders). |
| Tax Benefits: | Premiums paid qualify for tax deductions under Section 80C of the Income Tax Act, and the payout received by your nominee is generally tax-free. |
| Competitive Claim Settlement Ratio: | HDFC Life maintains a good claim settlement ratio, assuring timely claim fulfilment when needed. |
Max life smart secure plan:
This term plan offers joint life cover, premium breaks, additional payouts on accidental death, and more. It is a comprehensive protection plan that is tailored to their customers’ preferences. The Max Life Smart Secure Plus plan is a non-linked, non-participating life insurance plan that offers amazing and unique benefits like death benefit and other inbuilt benefits that include terminal illness cover and a special exit value. This special exit value is only applicable for NROP (pure protection) and the policy term 40 and above.
Features of Max Life Smart Secure Plus Plan:
Premium Break: Because the policy duration runs from 5 to 10 years, the insurance policy can help you accumulate wealth quickly.
Sum Assured Top-Up: The nicest feature about this plan is that the policyholder can stop paying premiums after 10 years. This function is available for policies with a duration of more than 30 years and a premium payment period of more than 21 years.
Return of Premium:- The Max Life Smart Secure Plus Plan includes the possibility to increase the sum insured at a later point. If the selected sum assured is equal to or greater than Rs.50 lakh, the sum assured top-up is available after one year of the policy’s term.
Special Exit Value: – You can pay 100% of the premiums using the premium return tool. The plan also assures that you will receive the assured sum at the end of the insurance period.
Benefits of Max life Smart secure plan-
Max Life Smart Secure Plus Plan offers Terminal Illness Coverage, which ensures financial support for policyholders facing a terminal illness. Following verification of the medical certificate, the insured will get a 100% guaranteed death benefit.
Death Benefit – As part of the Increasing Life Cover or Life Cover option, the Max Life Smart Secure Plus Plan provides financial support to the policyholder’s family members in the event of death. The policyholder can select the specific variant based on his or her preference.
Maturity Benefit – If the insured chooses the return of premium option while purchasing the plan, he or she will get a maturity benefit upon surviving the insurance term. This option allows the insured to receive the whole premium paid at the end of the policy term.
Accelerated Critical Illness– The insured is eligible to receive the complete cover amount after being diagnosed with one of the 40 distinct types of defined critical illnesses under Accelerated Critical Illness (ACI).
Accident Cover- If the insured dies as a result of an accident, his or her family members will receive the cover amount along with the base cover. The policyholder can add accidental cover to the term plan at any point throughout the premium payment period.
Joint Life Benefit – The Max Life Smart Secure Plus Plan includes a joint-life benefit that covers all of your spouse’s financial needs.
Riders – The Max Life Smart Secure Plus Plan provides a joint-life benefit that will cover all of your spouse’s financial needs.
Tata AIA Sampoorna Raksha:
It is now more important than ever to take precautions to safeguard yourself and your loved ones. Along with the promise of Rakshakaran, it is critical to protect your family’s financial future and ensure that they live the life they desire. Protection plans allow you to preserve the dreams and futures of people closest to you.
Tata AIA Life Insurance Sampoorna Raksha+ provides financial protection for your family while also returning premiums paid on survival at the policy’s maturity date. This allows you to protect your loved ones during the policy’s term while also incorporating a savings component, so you can live worry-free.
Important Aspects of the Tata AIA Smart Sampoorna Raksha Plan:
- You can select from 11 different funds, ranging from fixed income to equity-oriented, depending on your level of risk tolerance.
- You can also secure your financial objectives by receiving a death benefit in the event of an untimely death during the policy term.
- Refund of two times the mortality costs beginning in the eleventh year.
- Refund of two times the premium allocation charges in the ten, eleven, twelve, and thirteen years of the policy.
- Ability to pay regular or limited premiums for five, ten, and twelve years.
- Tax benefits provided in accordance with current tax rules.
Benefits of Tata AIA Smart Sampoorna Raksha Plan
- Pure Protection Term Insurance-
This is a pure protection term insurance plan that does not provide any maturity benefits. The goal of this plan is to provide substantial life insurance coverage at low premiums, ensuring that the nominee receives a large sum in the event of the policyholder’s death.
- Death Benefit
This plan provides four alternatives for receiving the Death Benefit. Let us grasp these benefits by examples.
Option 1 – “Sum Assured on Death” paid as Lumpsum to the nominee
Option 2: “Sum Assured on Death” paid as lump payment plus monthly income for ten years paid to the nominee.
Option 3: “Enhanced Sum Assured on Death” paid as lump amount to the nominee.
Option 4: “Enhanced Sum Assured on Death” paid as lump payment plus monthly income for ten years paid to the nominee.
The “Sum Assured on Death” mentioned in Options 1 and 2 is the highest of the following.
105% of all premiums paid at 10 times the annualised premium.
- Basic Sum Assured or cover amount
The “Enhanced Sum Assured on Death” mentioned in Options 3 and 4 is the highest of the following.
105% of all premiums paid 10 times the Annualised Premium Basic Sum Assured or cover amount, which increases by 5% annually (simple interest) until it doubles.
The death benefit received by the nominee is tax-free.
Bajaj Allianz term insurance plan-
The company has been a leader in the insurance market with top-notch products, effective service, and after-sales support. Bajaj Allianz Limited was formed by Bajaj Finserv Limited and Allianz SE. The company has been offering various types of life insurance plans in the Life Insurance category and the General Insurance category. Among the market leaders in the insurance industry, Bajaj Allianz Life Insurance offers a wide range of products at competitive rates. In addition, the company has a robust sales force, which contributes to its increased market share. The products that Bajaj Allianz offers include pension plans, savings and investment plans that can be obtained as ULIPs or conventionally, term plans for protection, child plans, and more. With such a broad product offering, the company aims to satisfy every individual’s insurance-related needs at a single source.
Features of the Bajaj Allianz term plan:
- The plan can be purchased on a single life basis or on a joint life basis for the spouse.
- In the single life option, the Sum Assured is paid in the event that the policyholder passes away during the term.
- In the joint life option, the plan continues after the first death and the Sum Assured is paid. If the second life also passes away during the term, an additional Sum Assured is paid.
- The death benefit may be taken out in instalments over a period of five or ten years, with each instalment having a value of (1.04 * Sum Assured)/60 or (1.08 * death benefit)/120, respectively.
- Non-smokers and preferred non-smokers are eligible for premium discounts, and selecting a higher Sum Assured level is eligible for premium rebates.
Benefits of Bajaj Allianz Life Insurance’s Term Plan
- Bajaj Allianz Life Term Plan offers competitive premium rates. Policyholders can take advantage of valuable features and coverage at reasonable prices.
- Enhanced Coverage: Add Bajaj Allianz riders to expand your insurance plan coverage. They provide extended protection against a variety of dangers. It covers coverage for accidental death, severe sickness, permanent disability, and other conditions.
- Hassle-free claim settlement -Bajaj Life Term Plans give you with financial security upon the death of loved ones by settling claims quickly. Following a fast verification, a one-day claim clearance is possible if the policyholder’s family requires immediate assistance.
- A Bajaj Life Insurance Term Plan might lower your tax liability. Section 80C of the Income Tax Act of 1961 allows you to claim tax benefits for insurance premiums paid. A tax deduction of up to Rs. 1.5 lakh per financial year is allowed and the cash received as death benefits is free from tax.
PNB Metlife Saral Jeevan Bima:
PNB Saral Jeevan Bima Plan is a pure term plan offered by PNB MetLife. In the event that the life assured passes away during the policy tenure, the plan’s beneficiaries will receive a lump sum benefit as insurance coverage. Because it is a pure risk coverage plan, PNB Saral Jeevan Bima Plan offers flexibility to the beneficiaries as well as financial security. The buyers can tailor the plan to suit their needs by selecting the desired coverage amount, premium tenure, and mode of payment.
Important Features of PNB MetLife Saral Jeevan Bima Policy
The following are the main features of the Saral Jeevan Bima plan that PNB MetLife Insurance offers:
- Anyone can purchase this plan, regardless of gender, place of residence, level of education, or occupation.
- Customers can choose from a minimum of 5 years to a maximum of 40 years for the policy term, and it can be easily and conveniently purchased online.
- This PNB MetLife insurance plan also enables customers to take advantage of tax benefits according to current tax laws.
- The policyholder can choose to pay the premiums in full, on a regular basis, or in instalments.
Benefits of the PNB MetLife Saral Jeevan Bima Term Insurance Plan:
Death Benefit -In the event of death following the conclusion of the waiting period
For Limited and Regular Pay: In the unfortunate event that the life assured passes away during the policy tenure, the nominee of the policy will be entitled to receive the death benefit in the amount of the total sum assured, which will be the higher of the following- Amount guaranteed to be paid in full upon death; ten times the annualized premium; or, 105% of the premiums paid as of the date of death.
The total amount of premium payable in a policy year, less taxes, underwriting excess premium, and loading for modal premiums, if applicable, is known as the annualized premium. The premiums referred to do not include any additional amount charged under the policy as a result of the underwriting decision.
Single pay-In the event that the life assured dies as a result of a pandemic such as COVID-19, the death benefit will also be paid to the policy beneficiary. In the event that the death occurs within the waiting period*, the death benefit will be 125% of the single premium, the absolute amount assured to be paid on death.
For accidental death with regular or limited pay: The nominee will receive the greater of the following payments upon the policyholder’s accidental death: 10 times the annualized premium, 105% of the premiums paid as of the date of death, or the entire amount guaranteed to be paid upon death.
For accidental in single pay: The nominee will receive payment to the greater of the following upon the policyholder’s accidental death: 125% of the single premium; the absolute amount guaranteed to be paid upon death.
For death from cause other than accident: The waiting period for this plan is 45 days from the date of commencement of risk. In the event of policy revival, the waiting period will not apply. If the policyholder passes away during the waiting period for reasons other than accident, 100% of the premiums (not including taxes) will be paid to the nominee as a death benefit.
Tax Benefits- You can claim term insurance tax benefits in accordance with the current tax regulations under sections 80C and 10(10D) of the Income Tax Act of 1961.
Maturity Benefit – The PNB MetLife Saral Jeevan Bima plan is a pure term insurance plan; it does not give any maturity benefit.
Conclusion
Choosing the right term insurance plan for a housewife is not just about financial protection; it’s about recognizing and valuing the invisible threads that hold a family together. While they may not contribute directly to the household income, their contributions are invaluable, ensuring the smooth functioning of the home and the well-being of loved ones. By securing their absence with a term plan, you create a safety net, ensuring that even in unforeseen circumstances, the family’s financial stability remains intact and their dreams can still be pursued.
