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Terminsurance for wife

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13 Jan, 2021 by Sarvesh Nawlu

Dear sir,

 

Pl. Guide me. I m working in pharmaceutical industry. I m having term insurance of 75 Lacs from HDFC. I have a housewife and a daughter at home.

 

I m planning to buy term insurance for my wife. But since she is not earning she said she doesn't require it.

 

Pl guide whether she is right.

 

Regards

Sarvesh

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13 Jan, 2021
Priyanka Tadipatri

Hello Sarvesh - 


If you ask any financial advisor, they'll say that since she doesn't actively contribute to your household income - your family is not 'financially dependent' on her, and hence, she doesn't need a term insurance policy. 


But I'd like to take a different angle on this. 


To get a term insurance policy for your wife who's a housewife - you should calculate the amount of money that you'd be spending additionally in case she passes away. You should look at things like - 


1. Does she take care of your/her elderly parents, and in her absence would you have to appoint a full-time person to fulfil this need? How much will you need to pay them - in the long-term? 


2. Does she pick up most of the weight when it comes to household chores, cooking etc.? Given you'll have to retain your current lifestyle, continue your day job - you'll need to hire people - helpers, cooks etc. for these jobs. How much will that cost your family in the long-run? 


3. Does she tutor the kids at home, and ensure their studies are done on time? Will you need a tutor to replace her? How much will that cost - in both the short term and long term? 


Once you add all such expenses - check if you can manage to pay for them without any disruption to your and your family’s lifestyle. Basically ask yourself: Do you need insurance for this financial risk?


If you need - take a term insurance for the cover amount you just calculated. 


If you don’t - skip it. 


Hope this helps. :-)

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08 Feb, 2021
Nisarg Mehta
What if someone plans to remarry? 😜
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08 Feb, 2021
Priyanka Tadipatri
We deal with the calculation the same way, as we would - if the wife remarried. :-)
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