When it comes to gifts, especially for your better half, jewellery, vacation, clothing might be the first to come to your mind. What if you could gift something that makes her feel the value she holds in the family? More than that life insurance will also ultimately protect the family she so enthusiastically cares for.
Here are five compelling reasons for you to gift a life insurance plan to your spouse, whether she’s a homemaker or a working professional.
The most basic benefit of any life insurance is that it protects your economic value for your family and dependents. It will do the same for your spouse if nothing else. On the question of your homemaker spouse’s human life value, there is a simple way to estimate.
If your wife is earning money, adequate life cover is a simple matter of 10 – 15 times of her annual take-home income. However, when we are talking about homemakers, we need to see their contribution’s market cost, if we are to replace them with commercial alternatives.
If we take out the emotional presence, the homemaker is managing the house, ensuring proper nutrition, teaching the children, shopping for the house and family, taking care of children’s commutation needs.
Replacing all these activities can easily cost you anywhere from Rs. 25,000 to 40,000 a month. If we want to draw this sum from a pool of funds, we’ll need approximately Rs. 50 to 70 lakhs.
Thus, the economic value of your spouse is significantly high and easily warrants an adequate life cover.
Imagine being financially dependent on someone in your adult life. Feels restraining, doesn’t it? Financial dependence often makes people hold back and compromise on the things they want in life. Homemakers are no exception to this feeling.
You may be trying your best to make her feel good with all kinds of gifts, but most usual gifts only bring temporary joy and long-term dependence. On the other hand, long-term financial gifts, such as investments, grow over time and will make her feel wealthier over time.
While she can make and even contribute to the future financial goals with investment gifts, life insurance can always protect her loved ones financially.
Some of the best term insurance plans, like Canara HSBC OBC Life Insurance’s iSelect Star Term Insurance, have inbuilt cover for terminal diseases. Life-threatening diseases from an insurer’s perspective are those illnesses which may have treatment available but are:
Few examples of such illnesses are cancer, heart failure, kidney failure, etc.
Life insurance plans, including iSelect Star, which have critical illness cover as an inbuilt feature, will offer financial assistance right at the stage of diagnosis. This is important as you will not only need money to afford the best possible treatment, you will also need to run your household as smoothly as possible during such time.
Accidents may happen with or without anyone’s mistake and can have a long-lasting impact on the life of the victims. If you or your spouse acquires disability due to an accident your ability to contribute to your family’s welfare suffers.
Also, you will need additional support in the way of medicines and modifications to home and vehicles, so that you can still perform as many duties as possible for you. An accidental disability benefit provides the financial assistance you will need for your family.
You can take care of your household and spouse if she suffers a disability from an accident. Remember that term insurance cover will not offer any support unless it’s a case of untimely demise. But you still need to spend money on taking care of your spouse, your household and if need be, even modify the infra to make her life easier.
Immovable properties and estate have always been a preferred way for financially independent people to stay in the memories of their progeny. Not that your children will not remember you without the wealth, but estate works as monuments in the family tree.
What could be better than you helping your spouse leave an estate for her children and grandchildren? And yes, a life insurance plan can help you achieve that.
Some of the best term life insurance plans offer whole life term cover till the age of 99. The iSelect Star term insurance from Canara HSBC OBC Life offers 99 years term cover with limited premium payment option. So, you can pay all the premiums before the retirement age of 60.
You can also get the whole life cover with a return of premium option. This plan will return all the premiums you have paid for the life cover once your spouse reaches the age of 60. However, the life cover continues and pays the nominees upon her natural demise.
You can secure a term life insurance for your homemaker spouse in the following two ways, either buy a new life insurance policy only for her, or add her to your existing term life insurance plan under a spouse cover. The iSelect Star Term Plan offers this feature where both you and the spouse are covered throughout the policy term for your respective separate sums assured.
On occurrence of first death or diagnosis of terminal illness, whichever happens earlier, to either of you, sum assured on death corresponding to the affected life is paid and policy continues with life cover on the other life with reduced premium.
On death or diagnosis of terminal illness of the second life, whichever happens earlier, sum assured on death corresponding to that life is paid and policy terminates. If marriage has taken place after the policy commencement date, you can add the Spouse to your policy within one year from the date of the marriage, subject to some conditions.
Under the policy, for a working spouse, sum assured can be chosen by the working spouse under the plan. The working spouse has the option to select any coverage option, any optional in-built cover and any benefit payout option at the stage of getting added for coverage under the policy.
For a non-working spouse, sum assured is fixed at Rs.25,00,000 which remains same throughout the policy term. Option to add optional in-built covers or choose a benefit payout option other than lump-sum is not available to non-working spouse.
Therefore, remember that policies that offer spouse cover can help you save on the premiums, provided the age of both the lives is similar considering that it is an important factor for premium determination.
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