Term insurance plans cover real risk and offer more coverage at a lower cost. In the industry, these plans are often used as protection for the family caregiver against life’s problems such as death or disability. In the unfortunate event of the payer’s death, his family can use the money they receive for immediate household purchases as well as fulfilling important life needs such as children’s higher education and marriage.
While many income members purchase life insurance to protect their families from life’s unexpected events, we often don’t think about buying home builder insurance.
Housekeepers, who are usually stay-at-home mothers or housewives, may not have paid jobs but play an important role in running the household. They take care of the children, see to their education, cook for the family, do housework, take care of the monthly budget, and take care of the elderly and sick members of the family. Their working hours are not limited to 9 to 5, but they often work tirelessly for more than 12 hours a day, with no days off or holidays.
In many families, unfortunately the builder is taken for granted and the work he has done goes unnoticed and unappreciated by the rest of the family. It is only because of his tragic death that the family realizes his true worth.
Assessing the financial need of the home developer
A homemaker is very important, and it is impossible to put a price on the love, dedication, and service he gives to his family. But let’s put ideas aside for a moment and try to properly evaluate the financial benefits of a home builder.
By calculating his financial value, we realize that it is important for him to be covered by a life insurance plan. If she is not available, the family may need to hire a domestic helper to take care of the children, do housework and prepare meals. They may also need to consult with a teacher who supports children in their studies, and a nurse who cares for the elderly in the family.
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While it may be possible to hire all the necessary help, it comes at a high financial cost which can be very difficult for a grieving and stressed family. At this critical time, life insurance premiums can go a long way in easing the family’s financial burden.
We must also consider that in some cases, homemakers are eligible to return to work and may choose to re-enter the workforce when their children grow up.
Advantages of a long term plan for home builders:
Maximum nominal premium coverage
Since these are usually life insurance plans with no benefits, a term plan offers life cover at a lower cost. Many life insurance companies also offer lower premiums for women.
The advantage of buying early
The longer you buy the plan, the lower your cost will be. By investing at the beginning of the term plan, the homeowner will benefit from lower payments that remain the same throughout the term of the plan that lasts 25-30 years.
While applying for the plan, builders must also follow the guidelines for writing, like other lives. Investing early, when a person may be in good health, may result in lower wages.
Often, homeowners neglect their health and medical needs due to the high cost of living and expensive medical care. Investing in a life insurance policy that has additional health benefits can provide important financial support if the homeowner has a serious illness such as breast cancer.
Buying a term insurance plan can also provide tax benefits to working spouses under various sections of the Income Tax Act, 1961. To understand these benefits, it is important to consult a financial advisor.
Peace of mind
Best of all, using a timeline gives peace of mind to the home builder. In his absence, he is assured that his family is financially protected, and the life cover can be used to keep the family together and achieve important life goals.
The perfect amount for a home decorator
Although it is difficult to put a price on the emotional benefits that a home builder brings to a family, for the purpose of calculating the appropriate amount of life cover, one can calculate the economic value of the home owner. This can be done by knowing all the replacement costs that the family can afford in the event of an unfortunate death. In India, according to the census guidelines, the life cover of a householder cannot exceed that of a working woman.
When calculating the life cover, the family must also consider any changes in the education of the work that the working man or woman may need to do so that the children and the elderly can be present at home. With so many nuclear families today, it is possible that those who are left may have to quit their jobs to be there for the children during this difficult time.
Finally, investing in a home builder’s time plan is important because it can help keep a family strong during a time of greatest need. Although there is no substitute for home ownership, having life insurance can go a long way in reducing financial stress and family stress.
(By Karthik Raman, Chief Marketing Officer and Head-Products, Ageas Federal Life Insurance)