The role of women is no longer confined to doing household work and taking care of the family. They contribute immensely to the financial well-being and household income of their families along with their husbands. Additionally, women have better cash management skills and can save more money than their male counterparts.
Unfortunately, compared to 72% of men having life insurance cover in urban cities, only 50% of women have insurance. One reason for this difference is that earlier only men were the breadwinners. So, they invested in insurance to protect their families from financial uncertainty due to unexpected events.
Before discussing the benefits of term plans for women, let us understand what is term insurance. It is a type of life insurance plan that pays the benefits to the nominees of the insured in case of their absence during the policy duration. The nominees can use the funds for various purposes, such as meeting regular household expenses, paying education costs, or repaying outstanding liabilities.
Here are four reasons why women need to secure their loved ones with a term insurance plan in India:
- Financial stability for their families
Term plans act as income replacement if the policyholder dies during the plan’s tenure. More and more women are joining the workforce and contribute to their families’ finances. A term plan will pay the death benefit, which ensures that the family does not face financial problems if something untoward happens with the insured.
Life expectancy among women is longer than men, which reduces the probability of a claim. Additionally, women adopt a healthier lifestyle, which further reduces the risks for insurance companies. This allows women to procure a higher sum assured (SA) at an affordable premium.
- Critical illness coverage
Erratic lifestyles, unhealthy eating habits, stress, and several other factors increase the risk of critical ailments. Generally, women are more susceptible to illnesses like breast or cervical cancers. They can avail of extra term insurance benefits by adding a critical illness rider to their base policy for more comprehensive coverage. If the insured is diagnosed with an ailment, the insurer will pay the rider-related benefits. The insured can utilize this sum for her treatment, ensuring that her loved ones do not have to go through any monetary distress.
- Possibility to achieve long-term financial objectives
Today, women contribute equally in their careers, but this huge gap in the investments may be limiting. A term insurance plan can be beneficial in helping families achieve their long-term financial goals like children’s education or wedding in the unfortunate absence of the insured. The term insurance benefits ensure that policyholder’s nominees can sustain their current lifestyle without compromising on their long-term life goals.
The primary concern of most parents, especially a single mother, would be the well-being of her children in case of an unforeseen incident. A term plan ensures that she leaves behind a legacy for her children. It guarantees the children’s financial stability while dealing with emotional loss and helps them move ahead with their lives.
Even if a woman is not working, she plays a crucial role in managing the home and children. Sadly, society does not value the importance of a housewife because she does not financially contribute to the family. In case of her sudden absence, the family will need to hire someone to do the household chores. Without financial planning, this additional burden may result in a liquidity crisis. Therefore, one must not ignore the importance of safeguarding the family’s economic security, wherein a term plan will prove valuable.
Every woman should buy a term insurance plan catered to meet their specific requirements. Monetary security is important for working women as well as homemakers, and you should not overlook this.