Phone NumberTo Buy: 1800-258-5899 (9 am to 6 pm)



Locate BranchLocate Branch

Can a housewife buy a term insurance plan?

dateKnowledge Centre Team dateAugust 19, 2021 views314 Views
Term Insurance Plan | Buy the Best Term Plan Online | iSelect Star Term Plan

The simple “housewife” is actually the powerhouse of any family and her absence creates a vacuum that can rarely be filled by anyone else. Although the emotional scars can never be erased, a term insurance plan, for the housewife, now helps the family to at least ward off any possible financial challenges caused by the homemaker’s absence.

Although homemakers do not directly bring in revenue to the household, they contribute by doing tasks that are important for the smooth functioning of the house. Ergo, homemakers can be equated to the operations managers of the corporate world who run the kernel of the organization. In fact, more recently, there have been serious debates to assign an economic value to the work done by homemakers and add the same to the country’s Gross Domestic Product (GDP). Would you not pay a cook, a nanny or an estate manager to manage the household in the absence of the “housewife”?

The above points clearly advocate the necessity of providing term plans for housewives. But can a housewife buy a term insurance plan?

Basics of a Term Life Insurance Plan

Traditional thinkers went by thinking of life insurance as a mechanism to provide financial protection to the dependants in case of the demise of the sole breadwinner of the family. In return for this financial protection, called “Sum Assured”, the insurance company would receive “Premiums” for the defined policy term.

The amount under “Sum Assured” depended on the age and annual income of the insured and was pegged at approximately 10-15 times the annual income. The underlying logic of this thumb rule was simple: If the income-earner dies, his income*15 times should be sufficient for the children to become financially independent or for the wife to find alternative sources of income.

Also, in the interim, the corpus of Sum Assured will earn interest thus adding to the kitty and giving more time to sustain life.

In the case of homemakers, there was no clear human life value because they did not “earn” a specific income. Their death did not cause any loss of income. This logic kept housewives outside the purview of term life insurance.

Although, you could still buy life insurance policies in the name of your homemaker spouse.

iSelect Star Term Plan - Term Insurance for Housewives

One of the conditions that you will face often while insuring your homemaker spouse is that you need to have term insurance from the same insurer. Other term policies, like iSelect Star Term Plan from Canara HSBC Oriental Bank of Commerce Life Insurance, allow you to include your spouse in the same plan.

Here are the salient features of the iSelect Star term plan, and how joint life cover helps:

1. Joint life cover with the spouse:

Spouse can also be covered in the same policy at an additional discounted rate

2. Increasing Sum Assured

as per life stages so that the premium amounts increase gradually and remain affordable at all times

3. Return of premiums

You can get all your premiums back if both of you survive the policy term. What else can be more gratifying than getting protection for several years and also receiving all the money that you invested

4. Limited Premium Paying Term:

Pay for a defined term and get covered for life. This feature is a real value for money because you may pay only for 5/10/15/20/25 years and get your whole life covered.

5. The policy works on a typical “economies of scale” model and thus you get discounts on premiums for higher Sum Assured

6. Additional riders

are offered to cover accidental deaths, total permanent disability and financial support for children. These benefits are in addition to the core offerings and Sum Assured of the policy.

The disability benefits help cover incidental expenses incurred that may not be covered by the regular Mediclaim policies whereas the Accidental Death rider gives an add-on Sum Assured to provide more financial cushion to the family. Child Care Benefits help the child pursue their aspirations even after the untimely demise of the parents.

How Human Life Value (HLV) helps you in Determining Term Insurance Cover?

Modern schools of thought have redefined the way new-age insurers look at the contributions of homemakers. As mentioned at the beginning of this article, would you not pay a cook, a nanny or house help to manage the household in the absence of the “housewife”? This is exactly the annual expense that you would incur in case of the untimely and unfortunate demise of the backbone of the family.

Expense Type Amount
Cook* Rs. 15,000
Nanny* Rs. 14,000
Driver** Rs. 20,000
House help*** Rs. 15,000

*Average salary in Delhi basis figures available on
**Average salary in Delhi basis figures available on PayScale/Glassdoor
** Driving the kids to school/coaching, if applicable etc
***For chores including sweeping/mopping/washing utensils

The table gives an estimate of your spouse’s economic contribution to the household although the actual contribution is priceless because no-cook or nanny can ever replace the emotional strength that a homemaker provides to the family. However, this quantification is necessary for calculating the Human Life Value (HLV) which forms the basis of extending term insurance covers to the homemakers.

The total monthly expense will range from Rs 30,000 to Rs 60,000 depending on the services and this works out to an annual expense of Rs 3.6 lakhs to Rs 7.2 lakhs. If your spouse is about 35 years of age, you must extrapolate the annual expense, using the same thumb rule that was used for income earners, factoring in the inflation as well. Some components of the expenses, such as Nanny, Driver may not exist in future though.

Even with a modest Rs 3.6 lakh expense per year, the thumb rule of 10 times when applied, the projected corpus works out to Rs 36 Lakhs. This is the minimum insurance cover that the housewife should have basis the financial calculations. The exact amount will vary basis age and other personal circumstances of the family.

Here’s all you need to know about term insurance for housewives.

The term “housewife” has now evolved to be called “homemaker” to make it more gender-inclusive as more and people of the other genders also opt to stay at home to manage the household chores and run errands for the family when needed. Of course, this trend is very recent and the sheer magnitude of stay-at-home women is still staggeringly high. Adding them under the umbrella of term insurance will surely add to the family’s financial stability.

Related Articles

Browse by Categories

Get a Call Back

Do you want us to call back Please fill the form below

Annual Income (In Lacs)

Our Products

TERM Insurance PLAN

TERM Insurance PLAN

Whole life cover option available

Increase your life cover with changing life stages

Return of premium & in-built protection options

Multiple premium payment options

Avail tax benefits on premiums paid as per tax laws


Unit Linked Insurance Plan

8 funds and 4 portfolio strategies to invest

Loyalty additions and wealth booster

Return of Mortality Charge is available on Maturity under all three cover Options

Flexibility of switching between the fund options to take benefits of market movements or change in risk preference

Pos Easy Bima Plan

Top Benefits

Hassle free

Get double life cover in case of accidental death

Choice of flexible premium payment and policy term

Avail tax benefit on premium paid

Frequently Asked Questions (FAQs) for Term Insurance Plans

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term insurance plan doesn't offer any payout after maturity or expiration date

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 65 years of age. This is a term plan with return of premium option – that means all the premiums paid throughout the tenure will be paid back to you if you outlive the policy.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly when you buy the best term plan in India.

If your key purpose is to give your Family financial protection, go for the best term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan. iSelect Star is a term plan with return of premium option. All the term insurance premium will be paid back to you, if you outlive the policy term.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, the best term insurance plan pays a part of the sum insured to treat your disease.

Term life insurance plan riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance plan riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term insurance policy remains active until the expiration date.
  • Income Rider: This rider in a term insurance plan ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term insurance plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while Buying the Best Term Insurance Plan?

  1. 1. Are you buying a term plan with return of premium?
  2. 2. Amount of premium you have to pay based on your age, habits, education, and monthly income
  3. 3. The total number of benefits covered in the term insurance plan. Do they include benefits that you care about the most?
  4. 4. How to save money on tax if you pay for the term life insurance plan?
  5. 5. Do they offer regular income options?
  6. 6. Can you change the coverage and premium in the future?
  7. 7. Does the claim consider valid if death occurs outside India?
  8. 8. Which kind of death is not covered by a term insurance plan?
  9. 9. Can NRIs take a term insurance plan? If yes, what are the conditions?
  10. 10. Does the term insurance plan have a cash value if you decide to cancel the term insurance policy?
  11. 11. Under what circumstances can a term insurance plan be cancelled?
  12. 12. Can I pay the premiums online or make electronic payments?
  13. 13. What will happen to the term life insurance plan if the life assured starts smoking after purchasing the policy?
Call BackCall Back Pay PremiumPay Premium
Back to top