Should homemakers buy term insurance for themselves?
Earlier this week, Max Life Insurance launched a stand-alone term plan for homemakers. The company has expanded its Max Life Smart Secure Plus Plan, a pure vanilla life insurance coverage plan for individual policyholders, to homemakers. This policy can be purchased by housewives in the age group of 18-50 years whose family income is Rs 5 lakh or more. Max Life declined to respond to the query about the maximum coverage that would be provided to housewives under this policy. Several variants of the plan, with mortality and passenger benefits, will be available to housewives. But despite these lucrative offerings, the real question to ask is whether stay-at-home moms, who don’t make much financial risk, need to purchase term insurance.
What’s an Offer: Most insurance companies offer temporary coverage to housewives as a supplement to coverage for the earning spouse. Such plans are called spousal insurance, said Sajja Praveen Chowdary, head of life insurance at Policybazaar.com. These policies ensure that the family is protected in the event of the death of any of the insured. However, most policies of this type have a higher amount guaranteed to the primary owner, the earning member in this case, compared to the secondary owner, the homemaker.” Rs 40-50 lakhs.
Prashant Tripathi, managing director and CEO of Max Life Insurance, said that as of now, housewives cannot buy term insurance for themselves without their spouse’s insurance coverage (husband’s life is also coverage) and that the minimum requirement for spousal insurance is spousal insurance. Income is greater than ₹ 10 lakh.
Should you buy it?
Any housewife should ask herself a question before answering the call: will my family have enough financial resources to maintain the same lifestyle in my absence?