Why Term Insurance is Crucial for Women

Term insurance for women offers a big pay-out for highly affordable premium payments. As your family’s financial planner today, make the best choices for their tomorrow.

Women have played the role of financial planner within the household for decades. In the new millennium, more women are stepping out of their homes—be it in the company boardroom, around the conference table of a new start-up, or on the frontline as medical service personnel, women form a large part of India’s workforce.

In the past, most households had a single breadwinner who was also the head of the household. Today, the homestead is a partnership with multiple people earning and making joint decisions for the family’s wellbeing. With financial liberation and a larger say in decision-making, the contribution that women make to their households has significantly increased. What hasn’t increased in tandem is the value placed on women’s lives.

What do the numbers say?

The truth is that women are not adequately insured in India. While women make up 48% of the people in the country, they owned less than 30% of the total insurance policies sold in India in 2017-2018. The numbers have gone up slightly to reach 36% in 2018-2019 (IRDAI Annual Report). However, even the ones that own a term insurance plan in India have a risk cover that is just not good enough. On an average, women have 22% lower risk cover than what men in India have.

In these uncertain times, there is a constant fear that critical health issues arising from COVID-19 and other illnesses could clean out all the savings put aside for your family. Loss of a job, disability, and death remain looming fears, too. A glaring concern is that almost half of the population is not insured right. This needs to be corrected. There are myriad reasons women need term insurance, and an equal number of benefits when they buy term insurance plans in India.

What is a term insurance plan?

When you have dependents, a term insurance policy is a smart and necessary choice. A term plan is a pure protection insurance plan that provides a significant lump sum in case of death of the policyholder during the plan duration. The policyholder needs to make premium payments for a specific duration under a term plan.

If a policyholder survives the decades covered under the plan, there are no maturity benefits offered. However, in case of the untimely demise of the policyholder while the plan is in effect, the beneficiaries stand to receive a substantial corpus that will assure their financial health and wellbeing for a long time after the death of the life assured. A term insurance plan features highly affordable premiums and is cost-effective to boot.

Why do women need to buy term insurance?

Term insurance for women is a necessity as it provides financial protection and peace of mind in the face of the many uncertainties of life.

For their protection and your peace.

Whether you are a working woman, homemaker, or self-employed go-getter, your absence will leave a void that is impossible to fill in the lives of your family members. Since you have been shouldering all the responsibilities of the household equally, your absence will double the burden on your spouse. Not only will your spouse have to contend with all the financial responsibilities, but he will have to do it while juggling the role of care-taker of the children and the elderly. With a term plan for women, you can rest assured that your family’s financial needs will be taken care of even in your absence.

To gift your family freedom. 

While you are handling expenses and the daily running of the household, your family members have been living carefree lives because they know you are at the steering wheel. Neither your children, nor your elderly family members need to worry about financial planning, academic fee payments, holiday budget, and future wedding expenses. Ensure that the carefree living standards that they are used to continues with a term insurance plan for women that gives them a lump sum or monthly pay-outs after you are gone.

To ensure freedom from liabilities.

The cost of education, property, and tangible goods has sky-rocketed. It is nigh impossible to buy a home without a hefty home loan. Similarly, it is likely that you have other liabilities including car loans and credit card debt. In case of your untimely demise, all of these debts will become liabilities for your grief-stricken family. With a term insurance plan for women, the lump sum received by the beneficiaries can be used to cover these costs so your family is not burdened by it.

To save your money today. 

Term insurance for women does not only provide long-term protection benefits, it is also a good idea for the here and now. Term insurance plans offer income tax savings under prevalent income tax laws. Paid premiums up to Rs.1.5 lakhs can be deducted from taxable income under Section 80C of the Income Tax Act of 1961.

What are the benefits of buying a term plan for women?

• In a term plan for women, you have some important benefits offered to you.
• Typically, women pay lower premium rates than men so your term plan is even more affordable than usual.
• If you are a non-smoker, your premium rates are reduced even further.
• You can add riders to your term insurance plan in India to get more comprehensive protection for your life.

The importance of term insurance for women cannot be stressed enough. Create a safety net for the financial health of your family. As you are making bolder choices for your life and future, ensure that life insurance is a crucial element in your financial planning. Whether you are caring for your elderly parents, children, your spouse, or other dependents, there are term insurance plans for women that will take the weight of their future off your shoulders.