Term Insurance for Housewife

There are numerous ups and downs, which you need to be prepared for. It’s not only the male bread winners whose absence can affect a family. Housewives play an equally important role which cannot be undermined. Their absence can give rise to numerous struggles – emotional and financial to begin with.Term insurance for housewife can ensure extra financial security by covering education costs, marriage costs, loans, and health expenses for the present and the future. Hence, it is a must-buy product for the female counterparts of the household....Read More

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What is Term Insurance for Housewife?

Term insurance for housewife is a type of life insurance product that offers a guaranteed payout to the housewife’s family in an instance of unfortunate event with the housewife This guaranteed*# payout is provided against premium payment made by the policyholder.

Why Should Housewives Buy Term Insurance?

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It is definitely the need of the hour for housewives to invest in term plan. Given the rising number of illnesses among females, such as breast cancer, PCOD (Polycystic ovary syndrome), term insurance for housewives can be a necessity.

Here are some benefits of getting term insurance for housewife:

  • A term insurance for housewife can support your financial planning by offering the nominee a guaranteed sum to deal with necessary expenses.
  • Tax saving benefits.
  • Add-ons such as riders help in covering financial expenses due to critical illnesses

How to Choose Best Term Insurance for Housewife

Now that we have established why term insurance for housewife is required, here are some tips that can help you pick a term insurance for housewife:

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1. Ensure that you are Choosing an Adequate Cover

The last thing you would want is to choose a cover that is inadequate to meet your financial requirements. Therefore, it’s essential to go for a term insurance plan for housewife that offers financial coverage you need.

To ensure that, it’s highly recommended to go through your financial plans. Know how much savings you have and how much more you need. At the same time, keep a track of your present expenses, and anticipate your future expenses.

Decide an adequate coverage amount accordingly. As a thumb rule you can consider the cover amount to be 3 to 5 times of the husband’s annual salary.

2. Look for the Claim Settlement Ratio

The Claim Settlement Ratio is an important factor that you need to consider while buying term insurance. Claim settlement ratio is calculated by dividing the number of insurance claims settled by the number of insurance claims received by the insurer. Ideally, you should go for an insurer with a high claim settlement percentage.

Max Life Insurance has a claim settlement ratio of 99.34% (Source: As per Audited Financials FY’21-22).

3. Consider the Type of Term Plan

There are different types of term plans available; namely – Increasing Term Insurance, Decreasing Term Insurance and Return of Premium plan. As these plans offer you different features, you have to choose the one that suits your requirement and financial goals the most.

Top 5 Insurance Policy Features for Housewives

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1. Provides Financial Security

A housewife might not contribute significantly to the financial aspects of the household, but their contributions in the other sphere remain unquestionable. Getting term insurance for housewife can ensure financial security by promising a payout that can come to a family’s rescue. The payout can help the family combat financial crunches and pay for basic future expenses.

2. Affordable Premiums, You Get Better Coverage

Unlike a life insurance policy, term insurance for housewife is easier on the pocket. This is because term insurance comes with a death benefit. Life insurance, on the other hand, offers both survival and death benefit.

3. Benefits of Taxation

In order to encourage individuals to get life insurance, the Government of India offers numerous tax benefits to the policyholders. Under Section 80C of the Income Tax Act, they can get tax benefits up to the limit of INR 1,50,000. In addition to this, the payout offered to the nominee is also free of taxes under Section 10(10D) of the Income Tax Act.

4. Premium Waiver

The premium waiver is another feature offered by numerous life insurance companies. As the name suggests, this feature can waive off the premium should the need arise. In other words, there won’t be a need for the policyholder to pay the premium in certain instances. This is only applicable in instances wherein the policyholder is unable to pay the premium due to an accident or disability.

5. Get Additional Riders

Like any other life insurance plan, term insurance for housewife comes with the feature of riders. Riders are policy add-ons that you can get to avail extra benefits and increase policy coverage. The riders differ with the insurance company; however, the most common riders are Critical Illness and Disability Rider (CIDR), Personal Accident Rider, and room rent waiver, to name a few.

Term Insurance Riders

If a policyholder wishes to increase their policy benefits and coverage, they have the option of buying term insurance riders with their basic term plan for housewives. Although insurance riders vary with the insurance companies, here are the most common term insurance riders available with term insurance for housewife:

  • Accidental Death Benefit Rider


This rider promises an additional sum in case the policyholder dies in an unfortunate accident. The percentage is determined according to the original sum guaranteed by the term plan; it may also vary according to the insurance company.

  • Critical Illness and Disability Rider


The Critical Illness and Disability Rider offers an extra payout if the insured is diagnosed with a critical illness or meets with an accident that causes disability. The payout amount and payout frequency depend on the insurance company

Types of Term Insurance Plans for Housewife

There are different types of term insurance plans for housewives. Here are the types in brief:

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1. The Return of Premium Plan

This type of term insurance for housewife pays back the premium paid by the policyholder if the insured survives the policy term.

2. Increasing Term Life Insurance for Housewife

This term insurance plan for housewives gives the policyholder the option to increase the policy coverage during the term plan. This type of plan is ideal for policyholders who wish to increase their policy cover as their income rises and also for those who wish to.

3. Decreasing Term Life Insurance for Housewife

This type of term life insurance offers a sum assured that decreases at a set rate. The basic idea of this type of term life insurance plan for housewives is that as individual ages, their liabilities decrease, the need of a higher sum decreases.

Frequently Asked Questions

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The maximum age limit to buy a term insurance plan for housewives is 60. However, some life insurance companies allow housewives above this age limit to purchase a term plan.

Yes, some term insurance companies do offer accidental coverage for housewives. In addition to it, term insurance for housewives may as well cover health expenses. However, it all depends on the life insurance company you are buying a term plan from.

No, the employment status of the second spouse is not significant when you are opting for a term plan with spouse cover

The ideal sum assured should be 3-5 times of annual income of the husband. However, in case you feel the sum assured is not adequate to manage your expenses, you can raise the amount. However, be mindful that an increase in sum assured would increase the premium.

Anyone over the age of 18 and below the age of 65 is eligible for a term plan. This includes youngsters, married couples and senior citizens.

A policyholder is required to submit income proof to buy a term plan. Therefore, a non-salaried individual might not be able to buy a term plan. However, it is possible to buy term insurance for non-working spouse in India. Most insurance companies offer spouse cover in term insurance to help you add an extra layer of financial protection for your family in times of need.

Yes, you can get cheaper term insurance as a couple. Joint term life insurance would be cost-effective option as compared to buying two single-term life policies.

Yes, it is possible to add your spouse to a term life policy. Spouse term insurance allows the inclusion of your partner under your term plan coverage.

As the name suggests, a joint term life insurance provides insurance coverage for two people, not one.

ARN: PCP/TIHW/230822

Check out the different Online Insurance Plans from Max Life!

  • Max Life Smart Wealth Plan

    Comprehensive death benefit for your family member(s) in case of your unfortunate demise during policy term

    Guaranteed maturity benefits/Income Benefit and accrued guaranteed additions to help meet your life goals

    Multiple variants -lumpsum, short term income, long term. income, and whole life Income with unique benefits

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  • Max Life Smart Term Plan

    Financial protection against critical illnesses, including heart attack, cancer, and kidney failure

    Flexibility to choose the most suitable premium payment options that fits your budget and income

    Life coverage along with return of premium option to get the premiums paid back as a survival benefit

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  • Max Life Online Savings Plan

    Comprehensive death benefit covering the policy tenure, along with saving money for various life goals

    Monthly income, accrued bonuses, and flexible fund options for the policyholders with no policy charges

    Flexibility to choose a policy term up to 85 years, premium payment term and payouts to fit your needs

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  • Max Life Cancer Insurance Plan

    A comprehensive Cancer Insurance Plan that provides a payout at all stages of Cancer

    Get 10% increase in original sum assured in case of no claims for the first 5 years

    20% of Sum Insured - Waiver of premium, in early stage diagnosis

    Lumpsum payout - annual income for 5 years in major stage diagnosis

    Tax benefit under section 800, as per prevailing tax laws

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  • Long Term Income

    Guaranteed Income benefit for 25 or 30 years after the policy period ends, as per the sub variant selected

    Terminal benefit which equals total premiums paid, post completion of the payout period payable to nominee

    Four premium payment options – 6, 8, 10 and 12 years to be chosen as per suitability of the plan for your needs

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  • Max Life Smart Secure Plus Plan

    Comprehensive death benefit for your family member(s) in case of your unfortunate demise during policy term

    Guaranteed maturity benefits/Income Benefit and accrued guaranteed additions to help meet your life goals

    Multiple variants - lumpsum; short term income, long term income, and whole life income with unique benefits

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  • Term Plan with Return of Premium

    Option to receive the premiums paid back on successful survival of the insured till end of policy term

    Death benefits for your family members in case of any eventuality leading to the loss of your life

    Limited pay options to pay for term plans with return of premium - 5 Pay, 10 Pay, 12 Pay, 15 Pay, or 60 Pay

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  • Max Life Waiver of Premium Plus Rider

    Waiver of all future premiums in case of the covered dismemberment so that you can live worry-free

    Future premiums waiver in case you suffer from critical illnesses as specified in the rider terms

    Continued benefits of the base policy to give you peace of mind about maintaining various life expenses

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Customer Reviews

Max Life Term Plan

“Subodh Mishra helped me a lot in getting the money. He personally collected the documents and helped me at every step. I am extremely thankful to him and I would like to buy another Max lIfe policy in future”

Subodh Mishra

Max Life Term Plan

“I already have a policy and buying this was a nice experience.This is according to my requirement. Completely satisfied with details shared by customer care executive before purchasing the policy.”

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Max Life Term Plan

“I visited Amritsar branch after the demise of my son. My family was not left with a single penny and it was getting impossible to make the ends meet. Vinay Sharma gave me the right direction and helped me at every step to receive the claim amount and gave a source of income to my family. I thank him and bless him from the bottom of my heart.”

Vinay Sharma

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