According to recent surveys, in India, only 50% of women in urban areas have insurance as opposed to 72% of the male population. Earlier the men of the family were the primary breadwinners, so insuring the male member of the family would thereby protect the entire family’s financial security even after the member’s demise. However, with more and more women making their foray into the world as independent, well-educated, and equal breadwinners in their household, the picture in every industry is changing. Moreover, due to the growing emphasis on female empowerment homemakers are also being seen in a different light. 

Thanks to this progressive social shift, women are gradually drawing closer to equal standing with men in various aspects of life. One such aspect that needs to be highlighted is life insurance. Despite research that indicates how women may be more prone to health complications during childbirth or critical illnesses, life insurance is still not seen as a priority. The existing wage gap only worsens this issue, making it difficult for women to handle significant expenses. Term insurance for women is one vital provision that should not be overlooked. Read on to better understand why women need life insurance:

Importance of Term Insurance for Women

Let us take a look at a few points that can clarify the importance of term insurance for women

  • Financial Independence for Herself and Security for Her Family

Every individual strives to achieve financial independence and security. Regardless of whether you are a homemaker, are taking care of your family or are a working woman, everyone has different financial needs, expenses and goals. Getting term insurance allows women to use their personal earnings and savings for their own expenses without having to worry about their family’s financial security, as an insurance plan with maturity benefits can take care of that. In the event of the unexpected demise of the insured person, the woman’s family will be provided with death benefits, thus stabilizing their finances. Even if you outlive the term, the return of premium can provide similar security, which can help you achieve your financial goals or dreams.

  • Repaying Debts

With financial independence and goals, sometimes we may need a little extra assistance in the form of loans. However, if something were to happen to the female breadwinner of a family while the loan is still being paid off, her dependents may suffer under the debt. Here is where term insurance for women can help, by aiding in the repayment of such debts and helping the family even after one has passed on.

  • Retirement Planning

We all have certain ideas about how we would like to spend our retirement years. With the rate of inflation, it is essential that you start saving up early and get all your finances in order. Getting an insurance plan with maturity benefit will help you build up funds over a period of time, which you can get as a lump sum on the date of maturity, thus helping you fulfil your retirement dreams.

  • Tax Planning

More and more women are shattering the glass ceiling today, and with so many of them being earning members, tax planning is crucial. According to section 80C of the Income Tax Act (1961), premiums paid for the upkeep of term insurance and any life insurance plan is effectively exempt from taxes. In addition to that, the death or maturity payout from such an insurance policy is also tax-free. This makes term insurance for women all the more important.

Reasons Why Women Need Life Insurance

  • Financial Security

In the event of the earning member’s unexpected demise, term insurance acts as a replacement for their income and ensures the dependent family members’ financial security.

The women’s families will be provided with the death benefit, thus stabilizing their finances. Even if you happen to outlive the policy term, the return of premium can provide similar financial security.

Additionally, as women have a higher life expectancy as compared to men, the premium rates for their life insurance are lower as compared to those for men. The tax benefits that come with life insurance also benefit that family, and the vital aspect of policy cover for children should not be overlooked. The woman’s life cover can be increased if and when they decide to have children.

  • Protecting against Critical illnesses

Modern life has brought with it increased stress, hectic work lifestyles, and growing health concerns. For women in particular, critical illnesses related to female organ cancers such as cervical and breast cancer are huge concerns.

As per recent statistics, breast cancer cases account for 30% of all cancer cases in India. In light of this, Insurance policies that cover such critical illnesses can prove to be highly beneficial, especially for women who already have a family history of these diseases. In case you are diagnosed with a critical illness that the policy covers, you will be provided with a sum that can be used to cover hospitalization and treatment expenses.

  • Long term investments

Lack of proper investment strategies can impact women’s progress and financial stability in various spheres of their lives. Getting term insurance secures your finances, saves on tax, and acts as a long-term investment all in one swoop. With the help of unit-linked insurance plans or money back plans, you can invest money more effectively than at-home savings and utilize the payout to fulfil long term goals such as travelling, buying a house and so on.

  • Legacy

Many parents often worry about their children’s financial security and overall well-being in their absence or after their passing. Without you around to protect them, their finances may take a hit and destabilize their lives. Term insurance can put you at ease. By leaving behind a legacy for your children and family, the insurance plan helps provide them with some financial support and aids them in dealing with the loss and continuing on with their lives. This is doubly important for female guardians or single mothers.

  • Post-retirement plans

The rapid rise in inflation, health concerns, and growing expenses can all place a huge mental and financial burden on an individual. These factors can also put a dent in your retirement funds.

This is another reason why women need life insurance. Not only does it provide important covers for you and your loved ones, it also guarantees a stress-free and comfortable post-retirement life for you.

You can bank on the payouts from your policy or post-maturity survival benefits from your term insurance or money back plans.

Wrapping it Up

The importance of term insurance for women cannot be emphasized enough. Not only does life insurance protect you during times of unexpected loss, but it also provides a sense of financial independence and security, thereby empowering all women. In order to find the best term insurance plan for female members of the family, it is necessary to do adequate research and compare all your options before choosing a plan that suits your needs. Bajaj Markets is a one-stop platform for all your insurance needs; you can choose from several options from the top insurance providers in the market and apply for insurance with a tap on the screen. Buying insurance plans is now easier and faster than ever!

FAQs on Term Insurance For Women

Term life insurance is a type of insurance policy that guarantees payout of the death benefit if the insured person passes away during the specified term or time period. The policy can be renewed on expiry or converted to a permanent policy. 

Women should buy insurance in order to secure their dependents’ finances, leave behind a legacy, cover their funds in case of a critical illness or as investments for long-term plans and retirement.

Women should look for benefits or covers for critical illnesses related to female organs such as breast cancer or cervical cancer.

According to section 80C of the Income Tax Act (1961), premiums paid for the upkeep of term insurance and any life insurance plan is effectively exampt from taxes.

In case of the insured person’s untimely demise during the specified policy term, the family’s finances will be covered by the death benefit. Even if the insured outlives the term, the return of premium can provide a similar security.

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