Spend, Save and Invest Smartly
Rising expenses eat up your salary. Inflation consumes your savings. You are left with nothing. Fortunately your wife is working and you are able to save for a rainy day. Your children enjoy a good quality of life.You and your wife are able to afford the high fees for the quality education of your children. You are able to easily pay back the monthly EMI’s on the home loan. What if something were to happen to your wife? Would you be able to manage paying your children’s education fees and also the family savings without the second income?What about the health care expenses of your parents and your wife’s parents? Would you be able to bear all these health care expenses yourself? Does this mean you must buy term plan in wifes name.
A term life plan in the name of your wife is a must if you and your wife have availed a joint home loan. If something were to happen to your wife the sum assured (money got from the term life plan) would be enough to pay back the home loan or at least most of it. If you don’t have a home loan you could use this money to save for your children’s education and marriage.Your wife might have elderly parents who need good health care. This money could also be used to cater to their medical expenses.
You must consider taking a term life plan with a critical illness rider in the name of your wife. If your wife suffers a critical illness such as a heart attack or a stroke a lump sum amount is paid to her for the treatment expenses of the disease. This would keep the family savings intact and tide over a financial crisis.
You could also consider accidental death benefit rider in the term insurance plan. If your wife dies in an accident then you get the sum assured under the policy. You also get an additional amount from the accidental death benefit rider.
You can still take a term life plan in the name of your wife even if she is not working. If something were to happen to your wife the sum assured could be used to provide a good health care to her parents. Money could also be used to provide a good education to your children and also help in the marriage expenses of your children.
You have learnt the benefits of taking a term life plan in the name of your wife. It is up to you to decide which riders can be taken along with the term life plan. This term plan in wifes name could prove to be a safety net when you need it the most.