They say that women are the backbone of the family. They turn a house into a home and take care of everyone around them unconditionally. Today, we do not know what our life holds for us. Untimely and unforeseen events can be financially and emotionally draining for the family. An unforeseen and untimely demise of your wife can be emotionally draining and can increase the responsibilities on your head. So, apart from providing for your family, you will have other responsibilities on your shoulders, such as solely taking care of your children, managing household work, etc.
In case of the breadwinner’s unfortunate and untimely demise, his or her family can be at financial risk and would face hassles while achieving their goals and dreams. Keeping in mind the rising inflation, it makes it all the more difficult for the family to sustain in such difficult times. The question that often pops into the mind of homemakers is whether they should invest in a term insurance plan or not. To help you get an answer, we have prepared a conclusive guide on whether homemakers should buy term insurance for themselves.
Let us start by understanding what a term insurance plan is and its benefits.
What is a Term Insurance Plan?
A term insurance plan is a legal document or a contract between the policyholder and the life insurance policy providers company. The former pays premiums to the latter in return for financial security and death benefits. It provides a financial safety net to the policyholder and his family and ensures that they do not face any financial constraints in an unforeseen mishap.
What are the Benefits of a Term Insurance Plan?
- Lump-Sum Death Benefits
In case of the unforeseen and untimely demise of the policyholder, the term insurance plan will provide a lump sum amount of death benefits to the policyholder’s family. This will ensure that the family can continue with their lives even if the policyholder is not around to provide a financial backup.
- Tax Benefits
Another reason why homemakers should consider investing in a term insurance plan is tax benefits. The term insurance policy provides 1.5 lakhs of tax benefits in one year to the policyholder under Section 80C of the Income Tax Act, 1961. However, tax laws are subject to change from time to time.
- Financial Security
Have you ever given a thought of how your family will survive in case you meet an untimely demise? A term insurance plan offers financial security to the policyholder and his family and ensures that you all are at peace of mind. Moreover, it also helps you manage your expenses and save an ideal amount for the future.
- Helps You Secure Your Assets
In case of an unforeseen financial emergency, we might have to take a loan. Unforeseen and unfortunate demise can lead to a financial struggle for the family. This might result in the policyholder’s family paying off the loan against your valuable assets and properties. A homemaker investing in a term insurance plan helps the family here. In such cases, the term insurance will help you pay off the debt easily without having to risk your assets.
You now know why it is necessary for homemakers to invest in a term insurance plan. It provides financial security to the homemakers and protects them in case of the unfortunate demise of their husband. This plan will ensure that homemakers will be able to continue with their lives without having to go through any struggles. Today, there are numerous insurance providing companies available. However, one should go for a trusted and top-rated insurance providing company.