Most families only insure the person who brings home the salary. Dad has insurance. Mom doesn’t. This is a huge mistake. A housewife does work that would cost lakhs if you had to hire people. Cooking, cleaning, managing the home, raising kids, taking care of everyone.
What happens if she’s not there anymore? The family doesn’t just lose emotional support. They lose someone whose work has real financial value.
That’s why term insurance for housewife makes complete sense. An endowment plan can add another layer of security for long-term goals.
Let’s understand how both fit into smart family planning.
Why Insurance for Housewives Matters
Think about everything a housewife does daily. Wake up early. Make breakfast. Get kids ready for school. Clean the house. Do laundry. Cook lunch and dinner. Help with homework. Manage bills and expenses.
Now imagine hiring people to do all this:
- A cook costs 8,000 to 12,000 per month
- A cleaner costs 5,000 to 8,000 per month
- Childcare or a nanny costs 10,000 to 20,000 per month
- A driver for school runs costs another 8,000 per month
Add it up. You’re looking at 30,000 to 50,000 rupees every month. That’s 3.6 to 6 lakhs per year just to replace the work she does.
Term insurance for housewife protects the family from these sudden costs if something happens to her.
What Is Term Insurance for Housewife
It works exactly like regular term insurance. You pay a small premium every year. If something happens to the housewife, the family gets a big payout.
The money helps the family manage without her. Hire help. Cover increased expenses. Keep life stable for the kids.
The premiums are quite low because housewives don’t have workplace risks. A 30-year-old housewife can get 50 lakhs coverage for maybe 6,000 to 8,000 rupees per year.
That’s less than 700 rupees per month for serious protection. Every family can afford this.
How Much Coverage Makes Sense
Don’t pick random numbers. Calculate what your family would actually need.
Start with the annual cost of replacing her work. We calculated 3.6 to 6 lakhs per year earlier. Multiply this by 10 or 15 years.
That gives you 36 lakhs to 90 lakhs. This is your minimum coverage requirement.
Add any other financial goals she manages. Kids’ education fund. Emergency savings. Medical expenses. Round it up to a comfortable number.
Most families should consider 50 lakhs to 1 crore coverage for term insurance for housewife. It sounds like a lot but the premiums stay affordable.
What an Endowment Plan Does Differently
An endowment plan works completely differently from term insurance. It combines insurance with savings.
You pay premiums for a fixed period. Maybe 15 or 20 years. During this time, your family is covered if something happens.
But here’s the difference. When the plan matures, you get money back. Not just your premiums. You get your premiums plus some returns.
Think of it as forced savings with insurance attached. You’re building a fund while also protecting your family.
When Endowment Plans Work and What They Cost
Endowment plans suit specific family goals that need both protection and savings. Your daughter needs college money in 13 years or marriage funds in 18 years. An endowment plan with matching maturity helps you save while staying protected.
Some housewives manage long-term family finances. An endowment plan in their name gives them ownership of these goals.
But here’s the reality. Endowment plans cost way more than term insurance. For the same coverage, you pay 10 to 15 times more.
A 50 lakh term insurance for housewife costs around 7,000 per year. A 50 lakh endowment plan costs 70,000 to 1,00,000 per year.
Can you afford this for 15 or 20 years? Many families start strong but can’t continue. They lose coverage and get little money back. That’s worse than not buying anything.
Combining Both for Complete Planning
Smart families use both tools for different purposes. They don’t choose one over the other.
Get term insurance for housewife first. This gives maximum protection at minimum cost. Buy adequate coverage so the family is genuinely secure.
Then add an endowment plan if your budget allows. Use it for a specific goal like education or marriage expenses. Keep the coverage amount smaller since you already have term insurance.
This layered approach makes sense. Protection is covered through term insurance. Specific savings goals are covered through the endowment plan.
Don’t make the mistake of buying only an endowment plan with low coverage because it’s expensive. Your family needs adequate protection first.
Tax Benefits Both Offer
Both term insurance for housewife and endowment plans offer tax benefits under Section 80C.
The premiums you pay can reduce your taxable income. You save up to 1.5 lakhs per year under this section.
The payout your family receives is also tax-free under Section 10(10D) in most cases.
These tax benefits make insurance even more valuable for family planning. You protect your family and save on taxes at the same time.
Take Action This Month
Insurance isn’t something you do later. Start this month. Get quotes for term insurance for housewife from three different companies.
Pick the one that gives you the best coverage at a price you can afford for the long term.
If you want an endowment plan too, research which goals it suits. Don’t buy it just because someone is selling it. Buy it because it fits your family plan.
Protect the person who holds your family together. She deserves security just as much as the earning member does. Make this happen now.
