Do Housewives Require Life Insurance?

Homemakers play varying roles in our lives, whether as a spouse, a mother, a daughter-in-law, a sister, and more. They are quite literally an unbreakable force that effortlessly manages everything, right from caring for the children to organisational activities to managing the kitchen. Without them, life would be utter chaos. Have you ever wondered about the effect their loss would have on your household and family? Homemakers are caregivers, protectors, providers, and a stronghold in the face of adversities. Their absence would be devastating. And, the best way to deal with this, albeit financially and not emotionally, is life insurance. There is a general misconception that life insurance is required by individuals who are the breadwinners of the family. But did you know that even homemakers, like your wife, can benefit from it? Let's dive into why life insurance is a smart move for everyone, even if they don't earn a paycheck.

What Is Life Insurance?

Life insurance is a contractual arrangement between you and an insurance company, serving as a financial safeguard against the unpredictability of life. In return for their protective promise, you agree to pay them a regular fee called a premium. This contract acts as a safety net for your family. If something unfortunate happens to you, the insurance company steps in and provides a fixed sum of money to your loved ones. It is like giving them a financial cushion to rely on even when you cannot be there for them anymore. Life insurance isn't just about safeguarding your family's future. It is also an effective way to save money for your goals and dreams like retirement, your kid's education, or a grand wedding.

Why Does Your Wife Need Life Insurance?

Life insurance isn't just for breadwinners; it is high time we clear this misconception from everyone's heads. Your wife works as the backbone of your household, and overlooking their financial security is a big mistake. Whether they are earning or efficiently managing their homes, the absence of a wife can bring many emotional and financial hardships. They are the unsung heroes who juggle chores and care for the family, working round the clock without a day off. Their contribution saves us money we might otherwise have to shell money on. When you calculate the economic value of their work, you will realise that the decision to buy life insurance policy is a must for homemakers to secure their invaluable role in your lives.

How Will Life Insurance Help Your Family?

Here are some of the ways how life insurance for housewife can serve as a valuable support system -
1. Protects Your Family's Financial Future Your wife wears multiple hats, from cooking to cleaning and managing the family budget. Should something unfortunate happen to them, hiring help for these tasks could get quite expensive. This is where life insurance can help you by offering a payout that covers these costs and prevents financial strain. It is a way to maintain your family's quality of life in her absence.
2. Ensures Peace of Mind Life insurance for homemakers acts as a source of comfort for both you and your wife. It assures you that there is a financial safety net no matter what so that you can confidently face the future.
3. Provides Financial Independence Certain life insurance plans, like money back plans, endowment plans, pension plans, etc., guarantee* substantial returns. These plans can empower your wife to achieve financial independence in their later years. So, they will not have to rely on an earning member or the children for their living and medical expenses. Many insurance companies offer customised plans for women. While there might be limited term insurance options for your wife, they can opt for policies like money-back plans, endowment plans, pension plans, etc. When considering coverage for your homemaker, your (i.e. the working spouse’s) income is taken into consideration. You can estimate the extra expenses your family might face if your homemaker is no longer around and get coverage for that specific amount. However, it is essential to remember that your wife may have certain policy limitations because of the lack of personal income. It is a good idea to thoroughly review the terms and conditions of the policy before making a decision. Now, let's delve into some of the life insurance options you can explore for your wife.

Life Insurance Policies for Your Wife

Here are a few options to consider when you plan to buy a life insurance policy for your wife-

1️. Term Insurance Plans

Term insurance is a straightforward product that serves as a pure risk cover. If your wife were to unfortunately pass away during the policy term, it pays out a sum of money to the nominee. You should know that term plans are cost-effective because they do not include investment components.

2️. Endowment Plans

Endowment plans offer a blend of insurance and savings and are chosen often. They often come with guaranteed* returns, ensuring financial security for your family. When the policy matures, your wife will receive a predetermined sum and bonuses (if any), ensuring financial protection in later years.

3️. Money Back Plans

Money back plans offer a low-risk way to invest money over a specific period. In return, your wife will receive periodic instalments in the future as guaranteed* returns. These plans are beneficial for your wife because they provide a steady source of income to help achieve financial goals.

4️. ULIP (Unit Linked Insurance Plan)

A ULIP is a unique combination of investment and insurance. With this policy, your wife not only gets life coverage but also gets a chance to invest in funds of their choice. It will also offer the freedom to withdraw a portion of the accumulated funds after a lock-in period of 5 years. This feature can be a lifesaver during unexpected emergencies.

5️. Joint-Life Policy

Another option you can consider is a joint life insurance policy, which is a single policy that covers two individuals. In this scenario, you (the working spouse) become the 'primary life assured,' and your wife becomes the 'secondary life assured.' The insurance company assesses and issues the policy based on your income documents, as you are the primary life assured. Depending on the specific plan you select, the sum assured can either be shared jointly or kept separate for both of you. It is a convenient way to ensure financial protection for both partners under a single policy.

To conclude,

The contributions of your wife to the daily life of the family are invaluable and her financial security holds equal significance. This calls for an appropriate life insurance policy. It ensures that your family can uphold their lifestyle and secure their future - even in your partner’s unfortunate absence. So, no matter whether they are working or staying-at-home, getting life insurance for your wife is an important step toward a more secure and worry-free tomorrow.