Term insurance is one of the most popular types of life insurance plans. Many people in India, especially first-time life insurance buyers, prefer buying a term policy because it offers high coverage at an affordable premium. If you compare the term insurance premium with other life insurance policies like ULIPs or assured savings plans, it has the lowest premium.
Generally, only the earning members of the family purchase a term insurance policy to safeguard their family’s financial future. However, they don’t consider covering the non-earning spouse and overlook purchasing a life insurance cover.
The non-earning spouses in India (who are mostly women) don’t get the appreciation or attention they deserve. Also, their work and contribution to the family are often taken for granted. They may not contribute to the family financially, but they ensure that everyone in the family is happy, and they take care of all their needs.
Also, unlike the earning members, who get holidays and other perks, the non-working spouse works continuously and diligently every day without taking any holidays. They also don’t expect any rewards or returns for their work. So, the least you can do to appreciate your non-working spouse’s work and efforts is buy a term plan for them; it will only benefit you and your family.
Let us look at the benefits of buying term insurance for a non-working spouse.
• When you buy a term insurance policy for the non-working spouse, you essentially get an additional financial cushion for your family. If something happens to them, you can use the death benefits to take care of your family’s needs. If the non-working spouse is a woman, you may get a special discount on the premium.
• The earlier you buy a term plan for the non-working spouse, the lower the premium will be. Also, by buying term insurance at a young age, your family gets financial coverage sooner and for a more extended period, which could last for about 20 years or more.
• Most non-working spouses, especially women, put their family’s needs ahead of them and tend to ignore their own health due to the fear of high cost. However, investing in a term life insurance policy for them with healthcare riders can help them get necessary financial support when diagnosed with illnesses.
• Another significant benefit of buying a term plan for your non-working family member is that you can enjoy additional tax benefits under different sections of the Indian Income Tax Act.
• Lastly, when you buy a term insurance policy for the non-working spouse, you can heave a sigh of relief knowing that if something happens to them, you have the necessary financial resources to take care of the family without facing any difficulties.
What should be the ideal coverage amount?
Although you cannot put a value on a person’s life and the emotional comfort your spouse offers you and your family, you must carefully choose the coverage amount while buying a term insurance policy for your non-working spouse. The best way to do this is to identify the various costs you may have to incur in the event of their loss. This will give you a fair idea while choosing the coverage amount.
Final Word
Thus, by purchasing term insurance for a non-working spouse, you can secure your family’s financial needs.
