TomorrowMakers

A term insurance policy for a housewife helps secure the entire family’s financial health. An ideal term plan offers benefits such as greater coverage with an affordable premium, add-on riders, and savings on tax.

Should housewives buy term insurance

The main purpose of insurance plans is to provide financial protection to the policyholder’s family in case of an unfortunate event, such as their demise. Traditionally, a term insurance policy is considered essential for the earning member (usually, the male) of the family, and housewives tend to be neglected as they do not have any sources of income. However, it is important to recognise that they contribute financially too.

A homemaker’s job is as hard as any other, but her efforts and services are often underappreciated. She toils all day to run the household and manage responsibilities, often after sacrificing her own professional goals. From cooking to laundry to helping kids with their studies to looking after aged members, a housewife is necessarily a multitasker. And the disheartening thing is all this work is done without any remuneration as such. 

But what would happen if she is no longer around to look after the house? The impact of losing her would be emotionally distressing, for sure, but it could also be financially straining as all her duties would then have to be performed by a hired help. 

A housewife may not bring home money, but she does a lot of work that helps the household save money, thereby making her truly indispensable. This is, unfortunately, only realised in her absence. Whether you became a housewife out of choice or due to circumstances beyond your control, you should consider investing in a term insurance plan for all the benefits it has to offer. Let’s see what they are:

Related: 4 Types of insurance every young woman should have

Financial security

A term insurance policy for a homemaker boosts financial protection of the entire family. Since incomes don’t increase in the same proportion as expenses, it’s crucial to have a solid financial backup for your loved ones so that money never gets in the way of you and your family’s needs. The monthly payments from a term insurance plan will help sustain your current lifestyle. 

While nothing can fill the emotional void left behind by a departed member of the family, the payout received from their term insurance policy will make sure you don’t feel any financial hardships while raising your children. It will take care of their upbringing, education, and almost anything else. A term insurance policy thus serves as an added financial security to your loved ones in case something happens to you and your spouse. 

Related: 5 Important reasons why woman need life insurance

Greater coverage at a lower premium 

Term insurance is the simplest form of life insurance. It provides financial protection to your family at the most affordable rates. You can get a large amount of life cover (i.e., sum assured) at a relatively affordable premium rate. Don’t wait to buy a term insurance policy – buying at a young age means you pay a lower premium. What’s more, you have the option to increase the coverage whenever you want. 

Tax benefits

Besides securing the financial future of your dependents, a term insurance policy also lets you save taxes. Under section 80C of the Income Tax Act, you can claim a deduction for the premium paid up to Rs 25,000. Additionally, the death benefit received is also liable for tax exemption under Section 10(10D). 

Related: 8 Smart ways to put your tax refund to good use

Features to look for

Before buying a term insurance plan, you must compare various insurance products from different companies. Make sure that you read through terms and conditions of each policy. Also make sure to assess features such as the following:

  • Coverage and payable premium: Check if the plan provides adequate cover for your dependents. In the absence of income, you may have to depend on your partner for monthly premium payments, so make sure the amount of cover and premium aligns with your budget, liabilities, habits, and financial situation. 
  • Additional benefits: The riders on your term insurance plan will affect your payable premium, so be careful while selecting these additional benefits based on your needs.  
  • Waiver of premium: This option entitles you for a waiver on the premium in case of your partner’s demise. Since a housewife is financially dependent on her husband, it is important to include this clause in the policy you select. 
  • Benefits for children: The ideal insurance plan must provide benefits for dependent children.


Some companies offer the option to extend the husband’s insurance plan to the wife, irrespective of her employment status. Under this option, the spouse is eligible for upto 50% of the sum assured of the primary life insured, that is, if the husband has a cover of Rs 1 crore, then the wife gets a cover of Rs 50 lakh. They also offer a waiver on the premium to the secondary life insured (wife) in case of the death of the primary life insured (husband). 

Also read: How life insurance can support your long-term goals

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