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Life Insurance Plans for Working ‘Stay at Home’ Mothers

The main motive for buying a life insurance policy is coverage against loss of life and financial security. 

It is vital for everyone, especially women, to have a life insurance policy, regardless of them being financially dependent, stay at home mothers, or working professionals.

Need for a Life Insurance Policy for ‘Working Mothers’

In the scenario where a family has both partners financially independent and working, it is vital to have an individual life insurance policy for both the partners. It is generally found that a life insurance policy is taken only by one partner, and the wife does not have any policy in her name. 

In a house with both partners working, the unfortunate loss of life of anyone affects the household finances. If in such a case, the working mother faces an unexpected death, the household expense is transferred to a single income, leading to an enhanced financial burden on the surviving partner.

It is therefore recommended to mandatorily have a life insurance policy for a working mother and name her husband as the nominee. This would provide financial support in case of the wife's death.

Need for Life Insurance for a ‘Stay at Home Mother’

Stay at home; mothers have a significant role in the family. The countless activities performed by them, including childcare, managing the house, cooking, planning the household budget, and many other chores, ensure the smooth running of the house. Putting a monetary value to all these tasks leads to a huge value.

In most scenarios, the stay at home mothers is financially dependent on their spouse. However, buying a life insurance policy for a stay at home mother is vital from many aspects.

In the case of the mother's unfortunate death, the responsibility of managing the house and children get transferred to the working spouse. The additional responsibility is a tough call, keeping in mind the full-time job or business carried out by the individual.

A Life Insurance Policy at such a time helps in reducing the financial burden of the family that may arise owing to the hiring of external aid for the countless household chores.

Need for Life Insurance for a ‘Single Mother’

A Life Insurance Policy is of utmost importance for a single mother solely for the benefits of a life insurance policy. A single mother manages the household expenses, child/children's upbringing, their education expenses at her own. If a single mother dies unexpectedly, the children might be taken in by some close family member or relative. However, bearing their education and living expenses can put a dent in the pockets. The sum assured received from a life insurance policy ensures the much needed financial support at such times.

How does a Life Insurance Policy Benefit Women?

Although there are a whole set of core benefits of a life insurance policy for everyone, there are some unique benefits for women. They are:

  • Financial Security

    The core benefit of purchasing a life Insurance Policy is the financial assistance offered at the time of death of the life-insured or mature benefit after the policy tenure.

    The sum assured offered through life insurance plan helps in planning for future financial goals and offers cover for any loss of life.

    Having a Life Insurance policy for both the partners balances the financial responsibility and risk in case of the death of the woman of the family.

  • Cover for Critical Illness

    Critical illnesses take a toll on the finances of a family. The medical expense incurred on the treatment of life-threatening diseases is skyrocketing and can severely deplete the family savings at a rapid speed. The rising rate of critical illness in women has necessitated the need for women to have a life insurance policy. 

    Most Term plans offer critical illness rider that offers cover in case of a critical illness.  In most Critical Illness riders, a sum assured is paid to the life insured on being diagnosed with a critical illness. If the life insured dies from the illness, the remaining amount is paid to the family that helps in offering financial security.

    The sum received helps in meeting the future expenses of the children by the husband.

  • Budget-Friendly Rates

    As per studies conducted, the life expectancy of women is longer than men. The probability of paying a death benefit for a woman's life insured is greatly reduced for insurers. Life insurance companies thus offer life insurance policies at budget-friendly rates, attractive features and benefits, financial assistance, and life coverage.

  • Saving for the Post Retirement Period

    Planning savings for retirement is a major financial goal for everyone. Relying on a single source of income or policy may not be a feasible option considering the rising inflation rate. A retirement plan for the wife adds to the family's financial coverage and ensures the maintenance of a current lifestyle, even during the post-retirement phase.

    The life insurance plans for women are available at budget-friendly rates and lucrative benefits.

  • Providing for children in case of an unexpected Death

    Every mother wishes her children the best, be it a working mother or a stay-at-home mother. Providing the best life, the best education, best lifestyle, and access to world-class facilities is a top priority for all mothers. Planning from kindergarten to marriage, mothers work out the best for their children—life insurance taken by a mother assists in fulfilling their priority even in their absence. In case of unfortunate death, the insurers provide the sum assured or death benefit to the family of the mother who provides financial aid to the family.

Insurance Plans Available for Women

Some insurance Plans which women can buy are mentioned below:

  • Term Insurance Plan

    Whether a working woman or stay-at-home mother, every woman must buy a term Insurance Plan. A Term Insurance Plan offers coverage against the risk of life and offers death benefit in case of death of the Life Insured. The plans are available at attractive premium rates and discounts available for women.

  • Endowment Life Insurance Plan

    These insurance plans are quite suitable to plan for future financial goals. Depending on the future requirements, this plan helps to meet those short term or long term goals. A child's education, marriage, retirement, etc. can be easily planned with endowment plans.

  • Critical Illness Plans

    A life insurance plan that offers coverage against critical illnesses is highly essential for all women. The rise of life-threatening diseases among women makes critical illness coverage a necessity.

  • Unit Linked Insurance Plans

    This insurance plan is ideal for women looking for a mix of insurance and investment benefit. The combination assures a wealth creation for a future financial goal and insurance coverage in case of loss of life. 

FAQs

  • Q: What are the benefits of a Term Plan?

    Ans: For women buying Term Insurance plans, there are some special benefits. These are:
    • Budget-friendly policy premium rates
    • Discounted and lucrative premium rates for women leading a healthy life and for non-smokers
    • Overall life coverage with the benefit of taking additional coverage through riders
    • The riders are available for critical illness, accidental death rider, premium waiver rider, etc.
  • Q: What are the benefits of buying a Life Insurance Plan?

    Ans: Buying a life insurance policy has several benefits for women. Some of these are:
    • Tax benefits in the policy premium and benefit received under section 80C and 10910D) of the Income Tax Act
    • Financial Coverage to the nominee in case of death of the life insured and maturity benefit in case the life insured survives the policy tenure
    • Extra savings through the ULIP, money back, and endowment plans
    • Option to take additional coverage through various riders available.
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