Many people, especially in India, have this mindset that a woman doesn't need to buy term insurance. Our society finds it crucial for a man to buy term insurance cover for his family because men are probably seen to be the primary bread earners. It's believed that his sudden demise would have a more grave impact on the family than that of a woman. In fact, as per a report from IRDAI (Insurance Regulatory & Development Authority of India), only 139 out of every 10,000 women purchased life insurance. When it comes to men, the number doubles. In comparison to men, we can see only a handful of females investing in life insurance policies across the country. 

Does the ‘gender’ of the person buying term insurance make a difference?

Earlier, even the commercials advertising household items revolved around women. From mosquito repellents to washing powders and toilet cleaners, it seemed that household chores only concerned women and were women’s only concern. But it’s 2022 now. Gone are the days when the sole contributor to the family’s finances was a man. With more and more women joining the workforce, it is only obvious that they're also contributing to the family's expenses. 

The primary purpose of term insurance is that the family has financial security when the provider of the family passes away. So, no, the gender of the person buying a term insurance policy shouldn’t make a difference. Anyone who supports their family, financially or otherwise, irrespective of their gender, should get term insurance for their family’s financial safety. 

General conditions under which anyone, irrespective of gender, should buy term insurance

You should consider purchasing a term insurance policy if you have - 

1. Financial dependents: If there is anyone in your family that relies on your income - even partly, to meet their short-term or long-term expenses, they are financially dependent on you. And, to protect their financial security, you should buy term insurance. 
2. Loans or liabilities: If you have taken a hefty loan for any purpose - home, vehicle, business - and are even partly responsible for paying it off - you need a term insurance plan. 
3. Unfulfilled responsibilities: If you plan to contribute to the family’s long-term expenses, including weddings, higher education - then you must invest in a term insurance plan.
4. Not built enough wealth: If your income is contributing to the creation of a corpus fund to support your family’s long-term needs - you will need to buy a term insurance plan. 

Whether you have these responsibilities alone or in partnership with your spouse - as long as you earn money, contribute to your family’s lifestyle, and your family financially depends on you - buy a term insurance plan.

What about homemakers who don’t contribute financially to the household? 

Some insurance advisors and agents may suggest that since a housewife doesn’t contribute to the family’s income, the family won’t face any financial risk when she passes away - and hence, she doesn’t need a term insurance policy. 

But in our opinion, even a homemaker makes an indirect financial contribution to the family. Sure, they don’t have a 9 to 6 job but they do contribute by way of household chores and attending to the children and elderly. These chores may go unnoticed or unvalued, but you should know that the untimely demise of such a homemaker spouse would not just put you and your family into a state of emotional turmoil, it would also adversely impact the finances of your family. 

You and your family would need to hire domestic help to shoulder the vital responsibilities undertaken by them - hire helpers, cooks, etc. for household chores, a tutor for your children, a full-time person to take care of your elderly parents, etc. All this - so that you and your family can retain your current lifestyle. 

Getting a term insurance policy for a homemaker will ensure you and your family don’t have to compromise on your lifestyles in their absence. You can estimate the cost you and your family would spend additionally in case your homemaker spouse passes away, and buy a cover for that amount. Although the emotional damage would be irreversible, the term insurance claim can help reduce the financial stress. 

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