Insurance is the value placed on an earning member of the family. He is implicitly considered as an asset value and hence eligible for insurance. But same is not the case with a homemaker and he is not considered at par with an earning member. His value is lower than that of an earning member and so is the insurance.
Insurance provides risk cover to life from an accident or loss of life. And the amount of coverage is computed upon one’s earning capacity as a measure of the loss of income and living standards to your family.
Now let’s understand the value of a homemaker in order to assess the social value –
A homemaker may not directly contribute to the income but renders all services at home for which, if you can apply a cost calculation, you would arrive at a decent sum. These services can be a long list of – home management, washing, cleaning, cooking, kids’ care, pet care, grocery shopping, etc.
If you hire professional services for all or any of the services above, there’ll be a definite monetary expense. The homemaker not only helps you save this expense but also adds to your mental comfort and convenience. A sudden loss of this homemaker will impact your mental well-being, having to cope with dual involvement and emotional anxiety.
In the eventuality of the main earning member taking a break from active employment, either voluntarily or compelled, the challenge of ensuring inflow of funds is prominent and at equal measure for both of you. In such a situation, you would observe the value the homemaker is creating. Not only is the homemaker managing all the household services, which save you substantially; he/she is taking care of your emotional stability and also liable to co-produce earnings for financial stability. Further, as a family evolves and the children grow and chart independent courses, the homemaker spouse becomes redundant from nursing and nanny duties and would like to resume and regain professional space. At this stage, the insurance would come at a high cost due to age related premium.
Healthcare and medical emergency
Although, current employee Medicare policies provide for homemaker spouse and kids too, but overall coverage amount is usually, quite less. A homemaker needs to have an independent cover both from a security perspective and also from the emotional and economic value attached to her in family and social sphere.
You can also avail tax exemption benefit under section 80DD for insurance cover taken on homemaker spouse. In totality, a homemaker is as valuable in her role as the breadwinner spouse and hence, not beyond the consideration for insurance policy.