Life insurance plans are meant to provide financial protection to one's dependents and serve as an income replacement for the policyholder’s family in case of an untimely circumstance. Thus, if the policyholder were to pass away during the policy tenure, a death benefit will be paid to the policyholder’s dependents, which will ensure that they have the financial means to carry on with their lives.
While life insurance plans were traditionally only purchased by employed members of the family, it is also important for non-earning members, like housewives, to purchase life insurance policies to secure the lives of their dependents and increase their savings over time.
Reasons why life insurance is a must for housewives
- Financial Security: While you might not be contributing to the household financially, your value is truly indispensable to your family members. In case something uneventful were to happen to you, the payout provided by a life insurance plan will ensure that your children’s needs don’t suffer. Further, the payout will also provide your family members the means to pay for both immediate and long-term financial needs. Thus, regardless of whether one is employed or not, a life insurance policy is a must if you want to provide financial security to your loved ones.
- Wealth Creation and Savings: These days, life insurance plans come with a gamut of options. Thus, you can opt for a life insurance plan that will also act as a savings or investment instrument and increase your wealth over-time. Some of the life insurance products that you should consider investing in if you are looking to increase your savings are ULIPs (unit-linked insurance plans), endowment plans, money-back plans, etc. These policies, in addition to providing you a comprehensive life cover, will help you save or invest your money based on your requirements.
- Riders: While the coverage provided by one’s base insurance policy cannot be customised, insurance providers offer riders or add-on covers to policy buyers to help them enhance their coverage. Thus, along with your life insurance policy, you can opt for riders that will provide you adequate protection. A few riders that are offered with life insurance plans are the Accidental Death Benefit Rider, Critical Illness Rider, Accidental Death and Disability Benefit Rider, Term Rider, etc. Make sure to assess your needs and opt for riders that are best suited for you.
- Funds for Key Milestones in the Future: Certain life insurance plans offer survival benefits during certain pre-defined policy years. These payouts can help you finance key events in your life or in the lives of your family members, such as a child’s higher education, a family vacation, wedding expenses, etc. Thus, if you are looking for a financial product that will provide you guaranteed payouts every few years, make sure to opt for a life insurance plan with a money-back feature.
- Funds for retirement: If you wish to increase the retirement corpus that is available to you and your spouse during the golden years of your lives, it is necessary to invest in a pension/annuity plan. A pension plan will ensure that you have sufficient funds to pay for your medical expenses, living expenses, and other needs. Thus, even if you are not currently employed, you should consider purchasing a pension/annuity plan to help pay for your long-term needs.
Things to Consider
Life insurance policies should ideally be purchased by any individual who is looking for financial stability and a means to provide financial security to his/her dependents. However, the number of life insurance plans that are available to housewives are fewer, in comparison to the policies that are available to the working population.
Thus, if you are a housewife and are looking to purchase a life insurance policy, it is vital that you compare various life insurance products offered by different insurance companies in India. Make sure to read through the policy terms and conditions to ensure that you are eligible to purchase the cover. Also, make sure to check the premium quotes and opt for a policy that not only matches your coverage needs but also provides you the cover at an affordable price.