Insurance

Why Women Need To Invest in Term Plans

Gone are the days when women used to find solace in the fourwalls of their home. Today, women are increasingly venturing out and exploring new horizons. They are financially more independent and are perfectly capable of managing their family as well as professional responsibilities. In fact, the number of women in the workforce or who are taking up non-traditional responsibilities like becoming the sole breadwinner of their family or raising a child as a single parent has increased since the past few decades. With this increasing independence, there is also an increased awareness about ways to ensure their as well as their family’s financial security. This is why more and more women are opting to buy a term insurance plan.

What are Term Insurance Plans?

A term insurance plan is a safety net that provides a death benefit to the nominee upon the untimely demise of the policyholder during the insurance term.  These term insurance plans empower women with a number of benefits such as-

Wealth Accumulation

The returns received after the maturity of a life insurance policy are excellent to accumulate wealth overtime. This accumulated wealth can be used by women to start their own business, buy valuable assets or fulfill any long-cherished dreams.

Financial Assistance for Family

The main USP of term policy Is the death benefit offered under them. Most women prefer buying a term insurance plan to secure the financial future of her family members, in her absence. These policies prove especially useful for women who are the sole earning members of their family.

Secure Their Retirement Life

Retirement is the time where you can finally say goodbye to your professional worries and look forward to a peaceful, relaxed life. However, it is also the timewhen your medical bills keep on piling up due to old-age related health issues. With no source of fixed monthly income, taking care of these expenses can put a considerable strain on your finances. Even if your spouse has a retirement plan in place, it might become difficult to manage the ever-increasing expensesof day-to-day life with a single retirement plan. Women buying a term policycan help combine the added benefit of their retirement plan with their spouse’s plan to ensure a robust financial security during their old age.

Apart from the usual term insurance benefits, most term insurance providers also offer additional riders such as-

  • Critical Health Cover: Between juggling the home responsibilities and professional commitments, women often tend to ignore their health. In case a woman is diagnosed with any critical illness, the provisions under this rider can help take care of the medical expenses.
  • Disability Cover: In case of partial or complete physical disability due to an accident or medical condition that renders a woman unfit to continue her work and earn a stable monthly income, the disability cover offered under a term plan makes provision to provide monthly payments to offer financial aid.

How Women Can Benefit From Term Insurance Plans?

  • Housewife/Freelancer/ Work from Home Women:

It is extremely crucial for the woman of the house to have an insurance plan. Apart from the benefits and additional riders offered under a term insurance plan, the death benefit offered can provide financial support to her spouse and children after her demise.

  • Divorced/ Single Mothers

Divorced or single mothers comparatively have more financial responsibility towards their home and children. If anything is to happen to a single mother, a term insurance plan can assure financial security to take care of her child’s education and future financial needs to survive without her.

  • Working Women

Working women can use term insurance plans as an opportunity to avail tax benefits, while simultaneously securing the future of their loved ones. The premium paid under a term insurance plan is subject to tax deductions under Section 80 C of the Income Tax Act.

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