A person who looks after the well-being of the family while staying home is known as a non-working spouse in the language of insurance companies and financial institutions. However, being a homemaker is not as simple as it might seem to people. Taking care of the house and children is equally at par with that of any member who is earning in the family. From handling the complete home chores to looking after kids, a homemaker single-handedly carries the entire duty. Therefore, it is essential that you make a savings plan for your non-working spouse.
As your non-working spouse remains at home every time, they become financially dependent upon you. In case if anything happens to you or in case of your unfortunate demise, all the financial burdens will come on the shoulders of your partner. You might hold a term insurance policy for a secured future for your family. However, it is equally important to get a savings plan for your non-working spouse to make them a bit self-dependent.
Investing in a savings plan will further add up to the financial security of your non-working spouse and help them in planning their finances in a more flexible way, as financial planning is most required when running household chores. Here's why you must opt for a savings plan for your non-working spouse.
- It can assist in securing the future of your non-working spouse by offering them guaranteed payouts.
- You can get tax benefits on paying a premium of a savings plan under section 80C of the Income Tax Act, 1961
- You can receive a savings plan for your spouse at a low premium amount that renders similar benefits as that of a regular savings plan.
Benefits of investing in saving plans for a non-working spouse
Saving plans are considered as one of the most favored investment alternatives for people regardless of their financial or employment state. These are equally favored by a person for making investments for their non-working spouse as these plans offer more financial security to housewives who do not have any source of income. There are several benefits that a savings plan renders to a non-working spouse that are mentioned below.
Monetary coverage and routine payouts
Savings plans are also the schemes that fall under the purview of life insurance; they administer much needed fiscal coverage to a non-working spouse or a homemaker. The person can easily invest in these to secure their future if in case of the unfortunate demise of a working spouse. Alongside this fiscal coverage, this savings plan further assists a non-working spouse financially in a more comprehensive manner by providing them fixed and regular payouts.
Encourages financial discipline
An added advantage of investing an amount in a savings plan for a non-working spouse is that they become more aware and disciplined about their financial planning. It is a well-known fact that housewives hold a habit of saving money for their families that they can use in times of financial crisis.
Saving these funds in a savings plan can prove more beneficial for them as they provide the spouse with a more lucrative rate of return and further assist you in a better way. A savings plan can further inculcate regular saving habits among people. With the aid of these savings plans, a non-working spouse can invest periodically to save money that will additionally assist in guarding their future.
A non-working spouse or a housewife also holds some life goals and priorities in their lives. They also wish to save money for something that they wanted to pursue for a long time. Saving plans can, therefore, cater to all such life goals and requirements of your non-working spouse. These can also be modified to fit the requirements of a homemaker and also possess an extensive range of features
They further confer choices in funds and supplementary investment guidelines along with the alternatives in payouts and the term of the payment. Moreover, a non-working spouse can switch and turn around with their preference for investments. As a non-working spouse cannot invest in a savings plan with an augmented risk factor, there are certain plans that can provide them with guaranteed payouts on their investments.
Best saving plans for a non-working spouse
As mentioned above, getting a savings plan for your non-working spouse can help secure their financial future and present. Even after your time, they can take care of the household and live their lives comfortably without any worry with the safety net provided by a saving scheme. Mentioned below are some of the best savings plans that can help the non-working spouse in the most effective way.
Mutual funds through a systematic investment plan
The most outstanding and transcendent savings plan for a non-working spouse is Mutual Funds. These work in a perfect manner for people who are willing to collect long term wealth. Any individual, whether working or not, can effortlessly invest in a mutual funds scheme. Investment in mutual funds does not require any proof of income. People can invest their funds in smaller portions through a systematic investment plan (SIP) in mutual funds.
Moreover, the investors are provided with the absolute freedom to determine the ticket-size and the recurrence of a Systematic Investment Plan. There are certain mutual funds that enable people to start their investment just by investing Rs 100 for a month. Hence, it can be easily inferred that no sum is meager when investing in a mutual funds scheme, and this is the reason it is considered as one of the best saving plans for housewives or a non-working spouse.
Post Office Monthly Income Scheme (POMIS)
Another best saving policy option for a non-working spouse is a Post Office Monthly Income Scheme (POMIS). This investment plan was introduced by the Government of India, and you can get this saving plan at your nearest post office. As the Post Office Monthly Income Scheme falls under the ambit of the Indian government, it is regarded as one of the safest and best-saving plans for a non-working spouse.
When you invest funds in this scheme, you receive a payout of interest monthly. The minimum amount to be invested in this scheme is Rs 1500 and is receiving a lot of popularity among Indian housewives. The post office monthly income scheme is one of the most excellent savings plans if you are looking for a risk-free investment.
Investing in Recurring deposits (RD)
Recurring deposit or RD is also considered as one of the most excellent and best-saving plans if you are a non-working spouse. You can easily open a recurring deposits account from any bank. You can easily invest small amounts of funds in RD as per your convenience, and it further offers a much higher rate of return than a regular savings bank account.
However, the rate of interest and the minimum investment amount can differ across every financial institution. You can easily invest in recurring deposit accounts on a monthly, periodically, semi-annually, or on a yearly basis.
Investment in Public Provident Fund (PPF)
A Public Provident Fund (PPF) is the most prevalent and lucrative savings plan that was instituted by the Government of India. A person can easily invest your funds in small amounts at any duration you like. However, the maximum limit of your investments should not exceed Rs One lakh fifty thousand.
You can invest in these Public Provident Funds with a lock-in period of 15 years that makes it the perfect choice for long term investments amongst housewives and non-working spouses with the most lucrative return on your investments.
Investment in National Savings Certificate (NSC)
Last but not least, a non-working spouse can easily invest funds in a National Savings Certificate (NSC). These schemes are also offered by the government of India, and that is the reason why they are considered the most credible investment option amongst Indian Housewives.
You can easily invest in this scheme by visiting your nearest post office, and the most salutary part about this best saving scheme is that it requires less paper formality. You can start investing with even Rs 100, and there is no upper limit on the investment amount in this plan.
Whether you are the breadwinner of your family or a non-working spouse whose full-time responsibility is staying at home and looking after your family, investing a small portion in an online savings plan is essential. Savings plans carry different alternatives and investment products that a person can choose for their non-working spouse. However, it is essential to monitor and examine your specifications and goals prior to choosing a policy. Selecting the best saving policy will help you keep your spouse financially protected regardless of the circumstances you or they may have to face.