Insurance Policies for homemaker | Reasons why should a homemaker insure herself | can a homemaker get a separate life insurance policy | benefits
A homemaker does not earn money as the husbands do, but when you try to replace her, you will then realize the financial value of she has contributed in the family. The homemaker saves money which is added to the family income. So, the homemaker’s absence puts an additional burden on family’s finance in the process of family’s income and investments for maintaining the same lifestyle.
In the segment of life insurance, homemakers did not have an independent coverage available until recent amendments. The homemakers did not had any insurances or even an add-on insurance to cover linking her policy with the spouse’s life insurance cover. As because the homemaker does not financially contribute to a family, so she was considered unnecessary to be invested on a life insurance policy for her.
Can A Homemaker opt for a Life Insurance policy in spite having no monthly Income?
Looking at the homemaker’s contribution towards the family and financial value of that contribution, many insurance companies are now offering an independent life insurance coverage policy for homemakers between the age of 18 to 50 years. Irrespective whether or not the husband has life insurance coverage, now the homemaker has eligibility to get life insurance coverage from Rs. 20 to 50 lakhs providing the annual income of the family must be Rs. 5 lakhs or more.
Reasons as to why do a Homemaker needs a Life Insurance Coverage policy?
A homemaker manages all the household activities, takes care of children, managing old parent’s needs and necessities, acts like a tutor to the children, nurses the sick members of the family, does shopping for all household necessary things, and all times driver for children up and down the school, even family members from one place to another, the list of her duties toward the family is endless. People working in the offices have a fixed time to join the office and to call a day off, even they get weekends off but for a home maker it is 24/7 and 365 day a year. In the unfortunate even of her untimely demise, the family will need a replacement to fulfil these services. Now, sum up the cost for replacement of the services given by her. This expenditure will be the family’s additional cost. Her absence will not only impact a family’s finances but also effect the family’s future goals directly. All the savings and investments of the husband towards the children will get affected. So, if the homemaker has life insurance coverage policy, then the policy will take care of all the additional expenses in the home makers absence, and this coverage amount can be used for taking care of the family’s needs without compromising them.
The second reason for getting a life insurance coverage is that most of the insurance policies are offering critical illness coverage to the policyholder. As because the homemakers ignore their own health and medical requirements may be for lack of funds, or the bread earner of the family is not capable of meeting the expenses of critical illness of the homemaker then a life insurance policy will provide financial aid in case of critical illness. Therefore, with the increase of the cost of living, it becomes the most important matter for a homemaker to get life insurance coverage.
Benefits Of a Life Insurance Coverage policy for a Homemaker
Management issue-
A life insurance policy covers all the expenses made for ensuring proper management of the household needs in a homemaker’s absence. It helps in keeping the house running smoothly without putting any additional financial burden on the family.
Planning about future –
It helps build a strong support over time, which can be used for all domestic expenses of the family like child education, medical expenses for the old parents, care taker for the family and so on. This policy gives financial support to the family members.
Cost-effective benefit-
A life insurance coverage for a homemaker gives higher coverage amount at a lower premium cost. Helps the homemaker to provide support to the family financially even after her demise. As a result, for a homemaker, non-earning member premiums are affordable and also offers a very good return on investment.
Tax Benefit –
Life insurance cover for homemakers also offers tax exemption under section 80 C, section 80 D and section 10 of the Income Tax Act.
Additional Rider benefits–
Additional riders like critical illness are covered increase the coverage of the policy at a very minimal cost. While opting for a life insurance coverage policy a homemaker should opt for an additional rider for critical illness add-on benefit for better coverage.
Joint Coverage –
The life insurance coverage policy for a homemaker also provides joint coverage, that means a homemaker can addon with her husband’s policy as a policyholder herself and the surviving spouse receives the insurance coverage.
Conclusion
In a family a homemaker plays a very important role as a main pillar of the family which takes care of the family members and also secures financial stability of the family and acts like a life support for the husband in all small and major events. so, the importance of life coverage for the family’s lady cannot not be ignored. With the changing times and the high cost of living, it is important to have an independent life insurance coverage policy for the homemaker for maintaining the household activities and lifestyle even in her absence. Please no, if you get life insurance coverage policy for the homemaker at a young age, then premium amount will be less for the same amount of coverage.
FAQ
Question – What is homemaker life insurance policy?
- Answer – A homemaker life insurance policy is a policy which cover the financial support to the family in her absence.
Question – Why do the home maker need to cover herself with an independent life insurance policy?
- Answer – To Support the family in her absence and to get aid in her critical illness.
Question – what the benefits of the homemaker life insurance policy?
- Answer – Management issue, Planning about future, Cost-effective benefit, Tax Benefit, Additional Rider benefits, Joint Coverage.
Question – What is the age eligibility for homemaker insurance policy?
- Answer – For the eligibility homemaker insurance policy is between 18 to 50 years.
Question – what is the additional rider benefits in a policy for home maker?
- Answer – The additional rider benefits is a feature the give financial support to the insurer for treating critical illness.
Question – is there any concession on premium for homemaker insurance policy?
- Answer – Yes, as a homemaker dose not earn a regular income monthly so the premium is low so that she can pay easily and the returns are high to meet her expanses.
