Why Life Insurance Is A Must Have For Homemakers?
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Life insurance is basically bought to provide financial security in difficult circumstances such as the unfortunate demise of the life assured. In case of an unfortunate demise of the sole breadwinner of the family a death benefit is provided to the family so that they are able to meet their daily financial expenses. Most people in India still believe that men are the main earning member of the family but with the changing times women have grown just as equal as men and are contributing to make a living for themselves and their family. Some women in India stick to the household responsibilities and are equally contributing to the household.
Just as the life of an earning family member matters the most, equal importance should be given to the homemakers. A homemaker may not be earning a living but she is responsible for the household chores. In case of an unfortunate demise of the homemaker, managing a household will require additional funds. It is a very crude way to justify the need of life insurance for homemakers, but the life of a homemaker is as important as an earning member of the family. In the absence of the homemaker you may require a full-time maid, cook or nanny to look after your household. The death benefit receivable in case of an unfortunate demise of the homemaker may help you arrange for the financial obligations such as full time maid, cook or nanny.
Why Life Insurance Is A Must Have For Homemakers?
Without homemakers, earning a living and managing a household at the same time will become a difficult task. Mentioned below are some benefits that justify why life insurance is a must have for homemakers:
1. Additional Financial Protection
Purchasing a life insurance policy for your wife will provide you additional financial protection. Your wife may not contribute in making a living for the family but she sure has the responsibility of managing the household, taking care of kids and elders, cooking and cleaning. In her absence these household activities can be a burden physically and financially. In case of an unfortunate demise of the housewife during the policy term, the nominee shall receive a death benefit which helps the earning member to arrange for a full time maid, nanny or cook to take care of the household.
2. Life Cover at an Affordable Price
Some life insurance companies offer attractive premium rates for females. If you choose to purchase a life insurance policy for your wife, you can avail high coverage at an affordable price. Some life insurance plans even allow you to increase the sum assured at different circumstances such as child birth.
3. Tax Benefits
You can also avail tax benefits if you choose to purchase a life insurance policy for your wife. Premiums paid toward the insurance policy and the death benefit payable are eligible for tax exemptions under Section 80C and 10(10D) of the Income Tax Act.
To conclude
Homemakers are equally responsible for managing a household as an earning member of the family. Her life should be valued as the life of an earning family member would be. It is very important to understand that a homemaker should also be protected from the uncertainties of life that is why life insurance is a must have for homemakers.
Also read - How to make a claim under term insurance plans?
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
