TeamAckoNov 2, 2023
As a housewife or homemaker, you play a key role in the functioning of your home. While you might not be an active earning member of the family, your untimely death can have a huge impact on the family members. In such a scenario, a life insurance policy may not help with direct emotional support but it can surely offer direct financial support. This is where the Housewife Term Insurance concept comes in the picture. Read ahead to learn more about it.
A Housewife Term Insurance (HTI) policy is a concept where the homemaker or the housewife purchases a Term Insurance policy to ensure financial support to the family in case of her untimely death.
A Housewife term policy provides your family with a death benefit or sum assured. This amount can be paid out in a lump sum or in frequent intervals.
Most importantly, your insurance policy's death benefit allows your family to continue paying expenses including groceries, school or college fees and any outstanding amounts such as debts or mortgages.
The Human Life Value (HLV) assigned to you as a housewife is impossible to calculate precisely but for insurance purposes it may differ depending on your lifestyle, circumstances, and family needs.
As a superwoman who literally does it all, identifying what roles you manage, and the salary you would be making from each is needed to determine the Human Life Value. For instance, if you're the chef, nanny, housekeeper, and chauffeur in your family, the salaries that would be paid to the person/people who would perform these roles amounts to your HLV.
A housewife plays many roles in day-to-day scenarios. Thus, Housewife Term Life Insurance accounts for your financial contribution as chef, nanny, teacher, housekeeper, nurse, chauffeur, and more!
To put it in purely economical terms, without you, your family would need to hire one or more people to keep the home running. All this matters to determine the policy’s sum assured and the payable premium. The following points will help you understand the working of a HTI policy.
Housewife Term Insurance policies are determined by your HLV and your health among other factors. Health quotient and HLV are needed to determine sum assured and premium.
Your health status and lifestyle habits will influence your premium payments as well as the death benefit or sum assured payouts.
You should factor in your qualifications when you decide to purchase a Housewife Term Life Insurance policy.
Educational qualifications, jobs you worked at, and how much you made or could have been making now should be considered in your qualifications to determine your coverage and how much money your family should receive in case of your untimely death.
Based on your qualifications, roles you play, and your health, your insurance company will allot you with a specific premium payment.
You can make your premium payments at one time in a lump sum payment, or you can pay in regular instalments over the course of your policy tenure.
After calculating your Human Life Value, and premium payments, you will need to name the beneficiaries of your policy.
These nominees will be the ones who will receive your death benefit or sum assured after you pass away.
A Housewife Term Life Insurance policy is an important financial product you can purchase to protect your family financially after you pass away. It can help your family cover daily expenses, education costs, and outstanding balances such as debts or mortgages. Thus, ensure to keep your household running and cover your family's expenses by buying a House Policy.
A House wife term plan offers you and your family several benefits to keep the house running after you pass away. The following are some of the benefits of a Housewife Term Life Insurance policy.
A Housewife Term Insurance policy guarantees your family financial security and a way for them to keep the house running after you're gone. The death benefit from your policy can cover your family's cost of living, pay for expenses, and help them with education fees and any outstanding amounts you may have left behind.
You get lower cost premium payments in this policy because the coverage terms you have are limited; this is a pure life cover devoid of any savings or investment component.
A beneficial feature of the HTI policy is that it offers you the option to pick out the policy term and add-ons. In addition, your policy's payouts can be paid out in regular frequencies, or in a lump sum as your family requires.
You can be sure that your family will be able to keep your precious household running in case of your demise.
Any premium payments that you make for your Housewife Term Life Insurance policy are tax-deductible under section 80C of the Income Tax Act. You and your family can utilise these tax benefits with your Term Life Insurance policy. A tax deduction of one and a half lakh rupees is permissible on a yearly basis as per the applicable terms and conditions.
Yes, you can buy a Housewife Term Life Insurance policy on your own behalf. You have the option of buying the policy individually or as a policy with a joint term cover. A joint term cover policy means that both you and your husband own the policy equally.
A Human Life Value in Housewife Term Insurance is an approximate monetary value that you provide to your family by performing various roles as a housewife. This value is used to determine how much your family should get when you're not around.
It's not just housewives who can find the Housewife Term Life Insurance policy beneficial. The policy can also be beneficial for widows, single mothers, and wives who have husbands who can no longer work.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.
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