A term insurance plan is usually opted by a working member of the family because he can afford it. However, a term insurance policy is also important for a nonworking spouse because the cost to replace the many hats a stay-at-home spouse wears can be significant. Every person deserves to lead a well-protected, financially sound and risk-free life, and the best way to do so is by securing a term insurance policy.
Even if your partner is not working, you can buy a term insurance plan for him or her. This also brings financial stability to the household and covers you in times of need.
Reasons to Buy a Good Term Insurance Plan For Your Partner
The non-working partner at home is responsible for a lot of tasks and necessities. The non-working partner is involved in taking care of the children, cooking, and maintaining the house. So, she or he needs an insurance policy just like any other member of the family. There are many reasons why term insurance plans are important for a nonworking spouse in a household.
Helps in smart financial planning
The misconception that a non-working spouse does not need term insurance is dangerous because it undervalues the significant contribution of the stay-at-home partner. While one cannot compensate for the emotional loss of the spouse, the financial loss can be covered by term insurance. To employ a person to do the household chores in the absence of your spouse would cost you a lot. Here term insurance proves to be an essential tool ensuring that these costs are covered.
When choosing life insurance plans for your family, make sure you and your partner are covered. If you invest at an early age to secure term insurance for your spouse, the premiums would be much lower. Also, the premiums paid are eligible for a tax deduction, and the maturity proceeds from the policy are tax-free.
The money that you get from the term insurance plans can be used to secure the future of your children. It can protect your household from any kind of financial risk that arises later on in your old age.
Utilize a term insurance plan calculator to provide an estimate of your premiums based on your specific circumstances, enabling you to make informed decisions.
Financial assistance for the dependents
When you choose to get a term insurance plan for your nonworking spouse, you are reducing the number of dependents on your term insurance plan. By buying the extra term insurance plan, you reduce the dependency of your children on your term insurance plan money.
The dependents can have an increased safety net and higher financial security against the risks that might arise. You do not have to worry about the funds to take care of the household if you have a term insurance plan for you and your partner. The term insurance plans as a couple are like double security provisions to protect your family from financial downfall.
Build your retirement corpus
By using the funds from the term insurance plan, you can also build a strong retirement corpus. Even if your nonworking partner passes away before you, his or her term insurance plan acts like a financial cushion that you can use to invest in your retirement corpus.
The same thing goes for your nonworking spouse. If you have a term insurance plan and you die before the term ends, your nonworking partner also gets money to invest in different financial instruments and keep money for retirement. Given that your and your partner’s life expectancy will be high, by the time you get the money, you will be making plans for your retirement.
Investment diversification
Investment is something that you should do when you start to take up responsibilities. Before you go towards new phases of life, you should start investing money and diversifying your assets. It is better to have a dual plan rather than one plan where both partners have financial protection. If you have term insurance plans for both of you, this can protect your lifestyle and expenses for a long time.
Final words
The absence of a non-working spouse brings emotional as well as financial loss. Term insurance can help you prepare for financial loss. The tax benefits that you get from term insurance plans can save you a lot of money.
With term insurance plans, the financial stability of your family is well maintained, in case of an adverse event. Not only you, but your spouse also deserves to be well protected and insured, for which you need a term insurance plan for your partner.
You can use a free term insurance plan calculator to estimate the amount and then keep it aside for your non-working spouse. The insurance premiums are like time-to-time investments that are tax-free and fully beneficial.