Term insurance is one of the simplest forms of life insurance. When you buy a term plan, you safeguard the future of your family. As with it, you get a life cover for a specific time period. Within that period, if anything unfortunate was to happen to you, your family would receive the sum coverage of the policy. While there are several types of life insurance to choose from, what makes term insurance stand out is its low premiums and high coverage. Protecting the life of a breadwinner is an obvious decision one makes. However, it is equally important to protect the life of the backbone of the house, a housewife.
Why does a housewife need term insurance?
Term policy is the optimum way to safeguard your family’s future by paying fewer premiums and getting considerably huge coverage. This applies to a stay-at-home parent or partner, too. In case of the sudden demise of a housewife, the whole family’s life comes to a standstill. There can be mental, physical, and even financial trauma that a family might suffer. Many people wonder that because a housewife gets no paycheck, how would her absence worsen their financial situation. It is true that one does not get paid to be a housewife. However, there are several tasks she performs, be it cooking, cleaning, taking care of the household, and managing household expenses. If you hire someone to do any of these things, you would have to pay them a monthly salary to get the job done.
What benefits does term insurance offer to a housewife?
A term policy has several perks to offer to a housewife. Here are the most significant ones-
A huge coverage with low premiums
Term plan is one of the most affordable types of life insurance. You can simply buy a plan for your wife that has huge coverage without digging a hole in your pocket. Term insurances are quite flexible too. Based on your comfort, you can pay monthly, quarterly, or yearly premiums towards your term insurance. Check term plan premium calculators to get an estimate of the finances regarding a term plan. The premium for your wife’s term insurance mainly depends upon factors like her health condition and age. Hence, experts always recommend buying a term plan early.
A housewife may not be the breadwinner or the earning member of a family, nevertheless, she is an irreplaceable part. In her absence, the family might find it difficult to survive. However, with term insurance, the family gets a financial cushion that could help with the family’s security. The family could use these funds for health emergencies, hiring house help, or towards the education of their child. The sum cover received can help in meeting both the short-term and long-term needs of the family.
Waiver of premium
In the unfortunate event of the demise of the policyholder, there is term insurance with a return of premium option. Since the breadwinner of the family probably pays the premiums of his wife, this option proves to be of great help. After the demise of his wife, at least he would get the premiums waived of her insurance.
Insurance policies offer riders you can club with your basic term plan. Usually, pay additional premiums for the rider covers you choose. These days, critical illnesses are a common concern amongst women, especially breast and cervical cancer. When a housewife has a term plan that is clubbed with a critical illness rider, she can benefit from it greatly in case of a diagnosis. The policyholder can claim the medical expenses, along with other diagnoses under the rider’s plan. Apart from critical illness benefit riders, some other rider options that a term insurance offers are accidental death benefit rider, waiver of premium rider, accelerated death benefit rider, income benefit rider, and accidental disability benefit rider.
It is important that before buying a term plan; you check the term plan premium calculator to get an estimate of your premiums and sum-covered. Also, ensure that you can easily pay the premium you choose for your wife’s term plan throughout the tenure of your policy. A housewife is the backbone of a family. It is as important to safeguard her health and life just as protecting any earning member of the family.