Life Insurance for your home maker

Your spouse is a home-maker. Do you think that she justifies a life insurance cover? Read on to know the answer…

Many consider the premium payable on a life insurance policy as a necessary expense with no real short-term benefits. Apart from saving taxes, you may reason that a life insurance policy is needed only for the family’s breadwinner. Hence, taking a policy in the name of your spouse who is a home-maker is an avoidable expenditure.

However, we beg to differ. Indicated below are key points that may make you more than willing to gift a policy to your home-maker spouse…

Þ               Uncertainties of life, be it accidents, health problems or natural calamities can strike anyone (a breadwinner or a home-maker) at unexpected times. There is no other better antidote against uncertainties than an insurance policy.

Þ                   If you are the sole bread-earner of the family, your limited income may not be sufficient to take care of the health or accidental emergencies of your spouse.  An insurance policy in the name of your spouse would come handy in saving your hard-earned money from the onslaught of rising health and medical bills.

Þ                   Many insurance companies give a discount on the premium amount if you and your spouse or your entire family is covered in a single policy. Thus, the sum assured will increase substantially for a nominal additional premium.

Þ                   Buying a policy in the name of your spouse demonstrates your responsibility and care. Regular premium payment not only inculcates financial discipline but also serves the financial purpose of your spouse (and also children) for his/her entire life term.

Þ                   Many insurance policies come with the option of riders (or additional benefits) that can be added to the main policy by paying only a nominal additional premium. Thus you can save costs by not having to buy separate policies for health, etc.

Þ                   A home-maker spouse may not have regular income but definitely has an economic value in terms of the domestic services provided by him/her. The receipts of insurance proceeds of your spouse in case of accidents or untimely death would ward off the expenses that may arise when someone else takes up up his/her duties.

Insurance policy is a long term commitment. Hence, before buying one, consider all aspects such as the purpose, the term of the policy, age of your spouse and yourself and the disposable income before zeroing on one.