Gender disparity has been present in all parts of the world since ages unknown, albeit in different forms and at different levels. As societies continue to evolve and people become aware of their rights, many barriers are broken to make way for new revolutions. Today, women are known to stand up for equality against men in almost every professional field. However, the growing independence does not seem to percolate in making their own financial decisions. Many women still rely on men when it comes to investment choices. This results in a lack of awareness about concepts like term insurance and its importance for women.
Here, we will talk about term insurance and highlight why women should opt for it.
What is term insurance?
Term insurance is the most basic form of life insurance that provides financial cover to the life insured’s family and comes at reasonable rates. This insurance offers a larger cover or sum assured at a comparatively lower premium. In the event of the death of the insured during the policy term, the benefit amount is paid to the nominee. Term insurance offers financial cover for a specific time. The idea behind taking life insurance is to benefit from the life cover for the policyholder and provide financial security to the policyholder’s family.
Additional read – Top 5 insurance covers needed in anyone’s kitty
Why do women need term insurance?
Here are some of the main reasons why women should buy term insurance:
Women contribute equally to family income
Women are at par with men in almost every aspect, including contributing towards family income. Therefore, there is a growing dependency on women as much as on men. In case of an untimely death of the woman in the family, the family members may suffer financial stress. Therefore, if women have purchased term insurance plans, it can ensure that their family continues to enjoy financial stability, even in their absence.
Debt and other expense obligations
Many women assume that they do not need term insurance since there is no dependency on their earnings. However, if there are any debt obligations and to cater to other monthly financial expenses, there is always a need for a strong financial back-up. Women may end up leaving their families grappling with financial troubles in their absence. With the help of a term insurance plan, women can make sure that any open debt obligations are taken care of instead of creating additional financial stress for their families.
Women as homemakers
For women who have opted to be homemakers, there are still chances that their families may face difficulties in their absence. This is because the remaining family members may have to deal with many responsibilities at once. To hire additional help or support, they would require sufficient finances. As these expenses continue to add over time, it is important to safeguard one’s family through term insurance.
Financial security in retirement years
Every woman should ensure her financial security during retirement years, whether working or homemaker. A good financial safety net for retirement can also help beat inflation and ensure a comfortable lifestyle post retirement. Term plans can offer maturity benefits which help in financial protection. By making premium payments throughout the term, women can benefit by availing the payout at maturity to fulfil various retirement goals.
How can women select the right term plan for themselves?
The key points that women must note while buying term plans for themselves are:
- Buy a term plan from a reputed and well-established insurance provider
- Look for a term plan that has additional benefits for women
- Opt for a term plan with a good claim settlement track record
How much does term insurance for women cost?
The main determining factors for term insurance cost for women are the term plan selected, age of the applicant, and insurance cover opted. For example, if a woman who is 30 years old opts for a term insurance of Rs. 1 crore, she will have to pay in the range of Rs. 6,500 – Rs. 10,000 annually towards the plan. This is a very small portion compared to the future financial relief that a woman can enjoy.
Conclusion
The importance of term insurance is fast being accepted by the younger population, especially how it can help women. It is not just a financial protection in case of an unfortunate event but also an empowering tool that ensures financial freedom for women. It is best for women to realise this early on in life so that they can save on the overall cost and ensure complete financial protection.
FAQs
1.Can I take term insurance for a housewife?
Currently, most insurance providers in India do not have exclusive term plans designed for housewives or homemakers. Since term insurance plan options are limited in India, housewives can choose from pension, endowment, ULIPs, or money back plans to ensure sufficient cover at a low premium.
2.Are term insurance plans costly?
Some of the term insurance plans available in India may be costly, especially due to high administration costs levied by certain insurance providers.
3.Who is eligible for a term plan?
To apply for a term plan, an applicant must be an Indian citizen and at least 18 years old and the maximum age limit is generally between 65-69 years. Some term plans require applicants to undergo medical tests before availing the plan.
4.Is there a minimum income requirement for term plans?
Different term plans require different income levels. Depending on one’s income, the insurance provider may offer applicable term cover.
5.How much life cover should I choose in term plan?
While deciding on the life cover for a term plan, one must consider self and family’s financial needs in the future. This should include all possible open debt obligations and other expenses that are required to maintain a certain lifestyle.
