In Indian households, homemakers play a pivotal role in maintaining emotional and financial equilibrium. While their contributions may not be recorded in a salary slip, their value is undeniably immense. Yet, when it comes to financial planning and protection, especially in terms of life insurance, housewives often remain an afterthought.
This article serves as a comprehensive guide to term insurance for housewives in India, incorporating up-to-date facts, financial reasoning, and data-supported insights. If you’re wondering whether a homemaker needs a term insurance plan or how to get one, this in-depth analysis is for you.
Why Term Insurance Matters for Housewives
In India, over 75% of married women are not part of the paid workforce (Source: Ministry of Statistics, India). Despite not drawing a salary, housewives perform labor-intensive, full-time work — often managing childcare, finances, caregiving, and even eldercare. If a homemaker were to pass away unexpectedly, the family would face not just emotional loss but financial strain.
Here’s why term insurance for housewives is not just relevant — it’s necessary:
● Economic Replacement Value: According to Bloomberg, the estimated value of a stay-at-home parent’s contribution exceeds $180,000 annually in Western economies. In India, that’s around ₹12-₹15 lakhs/year in replacement services.
● Childcare Support: Term plans can help the family afford domestic help or daycare in the absence of the homemaker.
● Debt Responsibilities: Many housewives are co-applicants in loans or credit facilities. A term policy can clear shared liabilities.
● Legacy & Dignity: It ensures the homemaker leaves behind a meaningful financial legacy, promoting dignity and security for the children.
Is Term Insurance Available for Housewives in India?
Yes, but with conditions.
In India, many insurers have now started recognizing homemakers as eligible applicants. However, most policies are structured such that the homemaker’s cover is tied to the earning spouse’s insurance coverage.
General Eligibility Criteria:
● The husband or earning spouse must already have an active term policy.
● The sum assured for the homemaker is usually limited to 25%–50% of the spouse’s coverage.
● Age limit: Typically between 18 and 55 years.
● Health: Must pass basic health criteria or medical underwriting.
Example:
If a husband is insured for ₹1 crore, the wife (non-earning) can be insured for up to ₹25–50 lakhs, depending on the insurer’s terms.
Documentation Required
To purchase a term policy, most insurers will ask for the following:
● Age Proof – Aadhaar card, birth certificate, or PAN card
● Address Proof – Aadhaar, passport, or utility bills
● Relationship Proof – Marriage certificate or joint photo IDs
● Income Proof of Spouse – Salary slips, ITR, bank statements
● Medical Reports – Required for higher sum assured policies or applicants above 40
��Tip: Many insurers now offer tele-medicals, making the underwriting process quicker and easier.
Features to Look for in a Term Plan for Homemakers
1. Return of Premium (ROP) – A feature where all premiums are returned if the policyholder survives the term. This is attractive to families reluctant about ‘losing money’.
2. Low Entry Premium – Choose plans offering ₹10–50 lakh cover at annual premiums below ₹3,000.
3. Built-in Critical Illness or Female Illness Riders – Covers breast cancer, ovarian cancer, etc.
4. Claim Settlement Ratio – Choose insurers with 95%+ ratio. (Check IRDAI Report)
5. Policy Term Flexibility – Opt for a plan with adjustable term lengths — ideal for aligning with child-rearing years.
Sample Term Insurance Plans for Housewives in India (2025)
Insurer | Plan Name | Unique Feature | Approx Premium (Age 35, ₹25L cover) |
LIC | Jeevan Amar | Traditional trust + high coverage | ₹2,500/year |
Max Life | Smart Secure Plus | Return of Premium + Critical Illness | ₹2,800/year |
HDFC Life | Click2Protect Life | Customizable riders | ₹2,900/year |
SBI Life | eShield Next | Trusted brand with good CSR | ₹2,600/year |
Bajaj Allianz | Smart Protect Goal | Low entry premium, wide term range | ₹2,400/year |
Note: Rates are indicative. Always use insurer calculators for personalized quotes.
Real-Life Case Study: A Homemaker’s Family Secured
Anita Sharma, a 38-year-old homemaker from Jaipur, bought a ₹30 lakh term plan through her husband’s financial advisor. When she passed away in an accident two years later, her family received the entire claim in less than 15 days, thanks to pre-disclosure of medical history and proper documentation.
“We never thought of insuring her, but the payout helped us afford a full-time caregiver for our two kids,” says her husband.
This underscores the emotional and financial value of insuring non-earning family members.
Common Myths Around Term Insurance for Housewives
1. “She doesn’t earn, so she doesn’t need insurance” – Wrong. Replacement cost is real.
2. “Insurers don’t allow housewives to apply” – False. Many do, under specific eligibility.
3. “Term insurance is only for tax savings” – Incorrect. It’s a protection tool first.
4. “The premium is too high” – Term plans are the most affordable life insurance.
FAQs: Term Insurance for Non-Earning Women in India
Q1: Can a housewife buy a term policy on her own?
Yes, but most insurers require income proof or a financial tie-in with the spouse’s plan.
Q2: What is the claim settlement process like?
Straightforward. Required documents include death certificate, ID proofs, medical records, and nominee’s bank details.
Q3: Are riders like critical illness worth adding?
Yes, especially female illness riders that cover gynecological cancers.
Q4: How much coverage is ideal for a homemaker?
₹15–₹30 lakhs is typical. Use the thumb rule: 10x of replacement household value.
Q5: Are these premiums eligible for tax exemption?
Yes, premiums paid are eligible for deduction under Section 80C of the Income Tax Act.
Pro Tips for Buyers
● Use an IRDAI-licensed agent .
● Cross-check claim settlement ratio on the official IRDAI website
● Don’t hide health history — accurate disclosures ensure faster claims
● Consider joint life plans — some plans allow coverage for both spouses under one premium
Financial planning isn’t complete unless every family member is protected. Homemakers are often the glue holding Indian families together — emotionally, physically, and financially. It’s time we value that with real, financial tools like term insurance.
If you’re a husband or child of a homemaker reading this, ask yourself: If she were gone tomorrow, how would your family function?
The peace of mind a term plan provides is priceless.