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International Women's Day 2021 - Why women need to invest in life insurance?

The theme for International Women's Day 2021 is understandably connected to the pandemic. By focusing on women in leadership this International Women's Day, the goal is to push for "an equal future in a COVID-19 world."

Author:Indiafirstlife | Date:06 May 2021 | Time:18:29:00

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The scale of the global Covid-19 pandemic has ensured that everyone is living in a time that will be remembered in the annals of history. The theme for International Women's Day 2021 is understandably connected to the pandemic. By focusing on women in leadership this International Women's Day, the goal is to push for "an equal future in a COVID-19 world." To limit the spread of the coronavirus, most countries have deferred to lockdowns which means that people have spent most of last year within the confines of their home.

For many, this was an opportunity to see how much goes into running a household—from taking care of every small detail within the home to planning the household's finances. These tasks have conventionally been a part of the work that women do in India. Even after stepping out of the house to take up waged work, the task of household management is still primarily done by women.

On the occasion of International Women's Day 2021, people worldwide are called upon to think about the multiple roles that women have played, particularly in leadership positions, during the COVID-19 pandemic. From being the primary nurturer and caregiver to handling corporate meetings and financial obligations, women have fulfilled many roles.

However, the value attached to the work that women do and their lives need to be reassessed. Research shows that women tend to be financially conservative when it comes to saving for their future and claiming significant financial advantages like getting a life insurance plan.

This International Women's Day 2021, choose to become truly financially independent by gifting yourself life insurance.

Why is life insurance necessary for women?

Whether you are a part of a growing family or a single woman, getting a life insurance plan should be a crucial part of your financial planning. While you do not need to wait for International Women's Day to gift yourself a reliable life insurance plan, this occasion is as good as any to shine the spotlight on the inarguable necessity of a life insurance plan for women.

Create a safety net

One of the primary benefits of getting life insurance is the peace of mind that comes with knowing that your loved ones have a safety net to fall back on. With a term life insurance plan, you can ensure that your grieving family will have access to a substantial amount of money paid to the nominee in case of your untimely death. Whether you have children who rely on you, other dependents, or parents in need of care-taking, a term life insurance pay-out can help your dependents tide over a financially difficult time.

In the case of endowment life insurance policies that offer guaranteed returns, you may also get the benefit of cashback and the opportunity to add riders that will kick in to support you financially in case of an accident, permanent or partial disability, or critical illness. This International Women's Day 2021, choose to gift yourself life insurance to ensure that you have prepared for life's uncertainties.

Create wealth

While a term life insurance plan is a pure protection policy, there are a number of other life insurance plans such as endowment policies or market-linked ULIPs that you can use for the purpose of wealth creation. With an endowment policy, you can plan major expenses around the time of the policy's maturity, so you have an influx of money right when you need it the most.

Working 9to5 nets you a salary; however, you need to put your money to work for you if you hope to create a substantial corpus that will stand you in good stead in the long run. For women with a risk-appetite, a market-linked life insurance plan may help you meet your wealth creation goals while offering life insurance cover and tax benefits. Start saving from a young age, so that you also have the luxury to achieve a balanced portfolio even when you are investing in market linked insurance policies.

Save money by starting early

When it comes to saving on taxes or putting your money in a safe place, people in India have always relied on life insurance products. For those who are risk-averse, buying life insurance early on in life is a smart idea. Buying life insurance early allows you to avail of cost-effective rates and secure a significant life cover amount because younger people present less risk for the insurer who passes the benefit on in the form of low premium rates.

Furthermore, women typically get lower premium rates as compared to men of the same age. The likelihood of women being smokers or employed in dangerous occupations is lower and leading a longer healthier life is higher, which leads to lower premium rates.

Whether you want to create a safety net in case of unfortunate situations such as death, disability, and loss of wages, or invest in savings life insurance policies to create wealth for marriage, children's education, or retirement, there are cost-effective life insurance policies to suit your needs. You can avail better rates if you buy a life insurance plan when you are younger.

Create a retirement corpus

The fact that women live longer than men is scientifically-proven. However, this longevity should not become a nightmare. In all likelihood, living longer would mean outlasting your spouse or companion. Aging also brings with it a burden of increasing medical expenses.

A retirement life insurance plan helps you save for your golden years, so you do not need to depend on anyone else to meet your expenses. Buying a life insurance plan with suitable health coverage is also a great idea this International Women's Day 2021—promise yourself a comfortable life for as long as you live.

Paying for impending liabilities

Most single women, like single men, avoid buying life insurance because they do not have any dependents to think of. This is a fatalistic thought process that your family member will have to pay for in case of an unfortunate eventuality. Suppose you have a home debt, credit card dues, or an educational loan to pay off. In a situation wherein you are unable to pay off these liabilities such as permanent disability, critical illness, or death, these liabilities would be transferred to your family members.

Buying a life insurance plan with the right riders right now is a good idea to ward off the burden of paying for these impending liabilities that would otherwise fall on your family members in the future.
With increasing age and health deterioration, life insurance rates are only going to go up. Lock in the lowest rates for yourself by investing now, this International Women's Day.

Compensating for loss of income

A woman dons many different roles in her family. Today, most homes are running on the incomes of at least two family members. This means that your family stands to lose on the emotional front as well as take a hit financially. In today's world, both earning members of the family must have life insurance.

Not only is life insurance necessary to ensure your family's financial security in case of an unfortunate event, but it is also essential to ensure that you have the money to meet your financial goals.

Life insurance products with a savings or investment component offer you the financial support needed to meet your children's education expenses or create a retirement corpus. For businesswomen, a keyman life insurance plan is a business contingency requirement to mitigate losses as much as possible in a dire situation.

Planning for children’s needs

As a mother or single mother, you are responsible for ensuring that your child's physical, emotional, and financial needs are met. A child education life insurance plan or ULIP helps you create a steady income over a period of time. This money can be strategically used to pay for your child's expenses today and in the future. If the risk profile of a market-linked plan agrees with you, it can be used to hedge your bets against inflation in the future.

Factors to consider while buying a life insurance plan this International Women's Day 2021

Today, there are many benefits of buying a life insurance plan, whether you are young or old, single or married, working or not. Before you gift yourself a life insurance plan, here are a few essential things to remember:

Ensure that you are not underestimating your worth

One of the most common mistakes that women make when buying life insurance is not getting enough coverage. By underestimating your worth as a breadwinner or stay-at-home mother, you will be under-insuring and underestimating your family's needs. If something happened to you, every single rupee would be of value to your dependents. In general, it is recommended that your term life insurance cover should be 10-20 times your annual salary.

Choose the right life insurance products

The first step is to decide is whether you want a pure protection life insurance plan for security purposes, a guaranteed returns plan to meet your savings needs, or a market-linked ULIP plan to help you create wealth, a combination or a retirement plan to help you carve out beautiful second innings for yourself. Once your financial goals are outlined, you can pick and choose from the numerous plans and gift yourself the most appropriate ones on this International Women's Day 2021.

With a pure protection life insurance plan such as a term plan, you can get life coverage for decades, but there are no survival benefits to be earned if you survive the policy term. Term insurance offers a comparatively lower premium rate than other insurance plans.

With an endowment plan, you may get cashback at intervals, and a maturity amount at the end, with the peace of mind that your life is covered for a limited sum assured while the policy is in force. Such a life insurance plan offers you a combination of savings and insurance. Such a plan can help you meet your short- and long-term financial goals.

A retirement life insurance plan helps you build a corpus to plan your retired life in advance. Such a plan is a great tool to build financial security for yourself and your spouse in the future.

Your choice of life insurance plan will also have an impact on the riders available to you. By adding a rider to your life insurance plan, you can get protection against terminal illnesses, critical illness diagnosis, accidental death, permanent or partial disability, as well as a specific waiver of premium riders. You may also choose multiple policies to meet various needs.

Make space in your budget

As with any financial decision, you need to budget the premium amounts to be paid year-on-year in your expenses. Insurance is a necessary expense. Budgeting might mean cutting down other costs or creating a monthly plan to set aside parts of the amount. By planning in advance, you can get a policy that meets your needs and smoothens the process of paying the premiums.

Claim your tax benefits

Depending on the policy and the relevant IT sections, you may be able to claim tax deductions and exemptions on the premiums paid towards a life insurance plan and the benefits received from them. Factor these in during tax planning, so you get the maximum benefit possible from your life insurance plan.

Gift yourself financial independence

It is always smart to be in charge of your financial health. Not only does this make sure that you are not reliant on anyone else, but it also infuses a sense of pride and confidence in you. By gifting yourself life insurance on this International Women's Day 2021, you are giving yourself a future that is free from worry and a present that is self-sufficient.

At IndiaFirst Life Insurance, we understand the many roles that life insurance plays in your life. Our plans are customised to suit your needs. By ensuring that you get adequate life cover at the most competitive rates, you can ensure that your dreams for your family and loved ones remain on course through life's many certain uncertainties.

BY

Indiafirstlife

Headquartered in Mumbai, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), with a paid-up share capital of INR 663 crore, is one of the country's youngest life insurance companies. Our key differentiators are our simple, easy-to-understand products that are fairly-priced and efficiently serviced.We offer a diversified suite of over 46 need-based products & Riders (as of 31st March 2022) catering to varied customer segments, leveraging multiple distribution capabilities and augmenting various investment options. In all, propositions under the categories of Protection, Assured Savings, Wealth, Pension, Health and Group Funds for Employee Liabilities form a complete suite of offerings that help our customers prepare for the certainties of life. Our products are easy to understand and competitively priced with risk management being our core strength.

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