INSURANCE FOR HOUSE WIVES

As we all know Life Insurance is the core foundation of any Financial Planning and is primarily focused on the bread winner of the family which pre-dominantly happens to be the man. We use algorithms such as Human Life Value, Probable loss of income, etc. to determine the amount of minimum insurance needed.

While planning insurance we consider day to day expense which will have to be replaced in case of untimely death along with cost of present liabilities and future goals like child education, child marriage, successful retirement for spouse.

We have somehow reached a conclusion that a housewife has very high emotional value in a family and the only the husband or a working wife has monetary value which is true on a very basic level. But since we are doing financial planning why stick to generic beliefs, let us try and understand the monetary value of a house wife in any family.

The first step of insurance planning is income replacement for which we analyze the expense part of income and design a plan to have it secured. But these expenses do not include the countless roles a housewife plays such a calm chef to fuss kids make for food, 24/7 nurse when anyone is sick at home, sometimes a full time without leave maid, driver whenever your busy and kids need to be transported and so on.

She does these tasks with so much love and care and never complains and never stops doing them even while she falls sick hence a mathematical calculation cannot define its value, its simply priceless.

Death is certain only when it will occur is uncertain and mortality rates for men and women are not very much apart. As you prepare to replace your income in your absence so that your family does not have to down size its living or make compromises same way even house wives need to be insured so that in her absence the family lives as comfortably as when she was present.

Just as a man doesn’t want anything but the best possible for his kids in terms of education, facilities, opportunities same way a housewife also wishes the best possible healthy food, round the clock care for her family so why just consider a monetary value just for the man?

So now when you do your insurance planning even consider the cost of day to day services and take adequate insurance even for housewives because the cost of these services could be actually more than the expenses you normally consider.

These were the practical reasons why housewives need insurance. On a psychological level I feel that having insurance makes you feel your self-worth and boosts morale and the happiness of receiving a credit message is something different and cannot be replicated with anything else so don’t just stop at insurance, go ahead to investments to get some benefits in terms of taxation too.