In India, homemakers are the silent pillar of our families. They keep the household running, bring up children, and care for the earning members of the family, with no monetary rewards. Historically, their work has been considered non-monetary, which raises a crucial question: Can homemakers obtain term insurance plan?
Understanding Term Insurance for Homemakers
Term insurance plan is a form of life insurance that provides financial coverage to a family in the event of the policyholder’s premature death. In essence, it pays for lost income. So, when we consider a homemaker, who doesn’t necessarily have a “salary” in the classical sense—their work is still one that would cost a great deal to replace.
Picture this: the homemaker of a home is gone. The family may need to employ domestic workers, childcare agencies, cooks, tutors, or even counsellors. These cost money, and in many cases, a great deal of it. In Indian cities, substituting even 50% of the work done by a homemaker could amount to lakhs a year.
This epiphany is changing the thinking among insurers and families alike: homemakers need and now are increasingly able to, take a term insurance policy.
The Evolution of Insurance Habits in India
Traditionally, Indian life insurance companies have limited term insurance to earning members of a family. The logic was risk measurement as term insurance is designed to cover income, no income meant no insurable interest.
But, with shifting family dynamics, dual-income households, and growing awareness regarding women’s empowerment, insurers have started issuing term insurance for homemakers. Regulatory push from IRDAI (Insurance Regulatory and Development Authority of India) has also helped push more inclusive underwriting practices.
Why Insurance for Homemakers is Important
Here’s why homemakers need to be included in the family’s financial planning, particularly in life insurance:
Economic Value of Household Work: The financial value of a homemaker, if calculated in rupees, may be worth several lakhs annually. Cooking, housekeeping, taking care of children, budgeting, and nursing are all services that entail real-world expenses. In the event of a homemaker’s death, the family would have to bear these expenses, hence the term insurance being a financial cushion.
Increasing Financial Liabilities: Homemakers today aren’t just running the household, they’re involved in financial management, education planning, elder care, and in many cases, helping support home-based side ventures or freelance endeavours. In most homes, the homemaker serves as the hub around which all significant decisions revolve. Losing that person can profoundly affect not only emotional equilibrium butalso functional continuity.
Mental Peace for the Earning Member: Insuring the homemaker can also provide peace of mind to the earning spouse. With a term insurance policy, there’s the guarantee that children and dependent seniors will be taken care of, even if the homemaker is not there anymore. It eliminates financial uncertainty during an emotionally fragile period.
Eligibility & Criteria for Term Insurance for Homemakers
Although homemakers can avail of term insurance in India, there are some conditions and restrictions to note:
Coverage Amount: Insurance companies usually limit the sum assured for homemakers at a lower figure than for the earning members. This is more or less ₹10–₹25 lakh, although it can extend beyond that in some situations, particularly where the spouse earns a high income and a higher coverage themselves.
- Age & Health Requirements: All term insurance companies need the homemaker to be between a specific age group (typically 18 to 60 years) and complete simple medical tests to determine health risks. Any pre-existing medical condition may affect the premium or eligibility.
- Spousal Income-Based Underwriting: Certain insurers link the homemaker’s eligibility to that of the income of the spouse. For instance, if the earning spouse has a life cover of ₹1 crore, then the homemaker may be entitled to a term plan of ₹25 lakh. This is to ensure equal risk management.
- Policy Type and Tenure: Homemakers can usually choose regular term insurance, but there are also simple products such as group term insurance, micro-insurance, or return of premium term plans, returning premiums if the policyholder outlives the term.
What Homemakers Need to Consider in a Term Insurance Plan
If you are a homemaker (or intend to cover one), this is what you need to consider:
- Premium Affordability: Term insurance is usually cost-effective, but premium comparisons between insurers enable you to get the best value.
- Policy Tenure: Opt for a policy term that matches your family’s long-term requirements, particularly if there are dependent parents or young children in the picture.
- Claim Settlement Ratio: Opt for insurers with a high claim settlement ratio, which reflects a good record of claim payments.
- Add-On Riders: Include riders such as critical illness, accidental death, or waiver of premium, which can enhance the overall cover of the policy.
Gender Equality in Financial Planning
Empowering homemakers through term insurance is also a move toward gender equality in financial planning. Financial products have long been designed primarily for earning men. As women increasingly choose to be stay-at-home mothers, caregivers, or half-time professionals, the industry has to adapt to meet their needs.
Financial literacy initiatives need to engage homemakers, particularly in Tier 2 and Tier 3 cities. Insurance agents and advisors have to make the homemakers understand the value of insuring non-earning family members and incorporate them into overall risk planning plans.
Final Thoughts: A Cultural Shift is Underway
We’re witnessing a silent cultural shift. Indian families are slowly but surely recognizing that economic value isn’t defined by salary slips alone. The homemaker’s contribution is priceless and irreplaceable and term insurance is one way of honoring that.
So, can homemakers get term insurance in India?
Yes. And increasingly, they must. Insurers have started shattering old molds. Families are rethinking financial priorities. And the future bodes well for a more inclusive, equitable way of protecting themselves and their loved ones. It’s time we not only ask “Can they?”, but “Why haven’t we already?
