There is no refuting this fact. However, the issue that this article will focus on is insurance for housewives. Increasing numbers of Indian women now pursue careers; yet, a large majority continues to take care of the home, the hearth, the husband and the kids.
Regardless of whether or not their efforts are appreciated, housewives rarely have life insurance. The argument for not spending on life insurance for a housewife is reasonable enough: housewives do not support the family financially, and while their death would be an emotional loss, it would not affect the family financially.
The Financial Impact of Losing the Non-earning Spouse
But think of it in this way. The absence of a housewife can result in numerous additional expenses. For instance, if there is no stay-at-home mom, you may have to hire a nanny to take care of young children, particularly if day care facilities are not available locally. Household chores and cooking will then fall to other members of the family, or a full-time maid may have to be employed.
Providing for such costs can be a strain for middle- or low-income earners. In nuclear families, the husband may have to spend more time at home, which could then reduce his income-earning potential. This is where insurance for the non-working spouse becomes helpful. It provides a backup for such costs.
Life Insurance for the Non-earning Spouse
Let us move on to the question of whether housewives can get life insurance. Yes, they can. The policy should cover the costs associated with household chores, tutoring and nurturing the kids and so on. However, most insurance companies are reluctant to sell life cover to housewives.
This often results in a lack of access to term plans. One reason advanced for this is that term insurance plans are intended to substitute for the loss of income and since homemakers do not contribute to the household income, term insurance is not the ideal option for them. When term plans are provided, they may come with a low coverage limit.
Nevertheless, homemakers can apply for a gamut of other life insurance options including whole life insurance, ULIPs, endowment plans and so on. Moreover, life insurance continues to be cheaper for women in India, which makes it financially easier for housewives to apply for life coverage.
Finding the Ideal Insurance Plan for Housewives
While term life insurance plans are difficult to come by for unemployed women, some insurers may provide suitable policies. Term insurance is a good idea for stay-at-home moms because the policy can be continued until the kids are grown up or complete their college education. It is advisable to choose a convertible policy so that when the policy matures, you could convert it into a policy more suited to your financial situation at the time.
It may be a good idea to contact insurers who deal in insurance for women. You could find a policy that meets the financial needs of your family and brings you peace of mind in the bargain.
The author of the article, Deepak Yohannan, is CEO of www.myinsuranceclub.com