Women play a very important role in society. They are all-rounders in making a family life fruitful and purposeful. Women regulate family expenses, manage financial commitments, and plan for long-term obligations along with their life partners. They contribute to the family's financial resources with their physical and moral support. Their absence in a family is crucial and needs to be insured. Term insurance is an ideal option. Here, we shall discuss the significance of life insurance for women.
Why is term insurance important for women?
A term plan is a complete solution for a death benefit. It will serve as financial protection to the family at different stages in life. Let us understand the importance of term insurance for women in detail.
- For a woman who is an earning member - The developing global world has introduced professional job opportunities for women in India. Unlike the conventional practices, where the women are confined only to household works, they have become an earning member of the family. With time, the family gets dependent on her earnings. If the woman meets with an unexpected death, it may lead to a financial crisis. It may affect long-term and short-term financial goals of the family. Term insurance policies will provide the sum assured to the family to manage the void as much as possible.
- For a single woman - Some single women have lost their life partners or stand divorced due to personal obligations. They are responsible for raising their children, providing education, and planning a marriage later, all on their own. There might be an education loan, housing loan, and car loan that must be repaid regularly. If the woman meets with an unexpected death, the debt repayment will get affected and will become a burden to the close family relatives or the children. The relatives may not be able to help with the repayment because they cannot afford to do so amidst their financial commitments.
As term insurance plans are the most basic life insurance plans, they are affordable and provide a huge life cover. Therefore, a single woman should make it a point to purchase a term plan at the earliest to accumulate a large sum assured for the family.
- For assisting women medically - Term insurance benefits can be extended by opting for additional riders such as critical illness rider1, terminal illness rider, accidental death benefit rider, a total and permanent disability rider, etc. In these cases, the insured amount becomes payable to the policyholder. For example, if the woman is diagnosed with a critical illness such as breast cancer or cervical cancer, she will be paid the insured amount for the treatment and medications.
The premium for the term plan will be slightly higher in this case. However, it is worth the investment. For this reason, it is best advised that women purchase term insurance early in life. At a younger age, the possibility of having diseases or any other pre-existing ailments is less, which reduces the probability of death risk and further the premium amount.
- For a housewife - If a woman is a housewife, there are different household chores that she takes up in a day. For example, cooking, cleaning the house, taking care of the children, washing clothes, etc. The importance of these works is not understood during daily life routines.
If the woman dies due to a sudden accident, managing these activities becomes crucial in the long term. The life partner has to take care of the family by earning a living. However, he cannot manage all the activities. A specific person will have to be hired for different purposes. For example, a nanny to take care of children, a maid for household activities, etc. This will incur additional costs. If the woman was insured with life insurance term plans, the sum assured could be used to manage these expenses to a considerable extent. It will reduce the financial burden of the family.
- For helping a woman pursue her goals – All the ambitions and wishes of a woman in life must be appreciated and accepted with due respect. However, due to family obligations and other commitments, either it gets delayed or never happens. It can be a personal desire like going on a world tour or providing a very high standard education for the children abroad. Suppose the woman cannot fulfill her wishes during her employment phase.
In that case, she can always achieve it later in life with the help of Tata AIA term insurance that provides the premium paid as a refund when she outlives the policy term. As a policyholder, she can also enjoy tax benefits* and exemption under Section 10(10D) of the Income Tax Act. This fund can be used to plan her desires at her will.
Many of us generally do not realize the worth of women in the family. When there is an unexpected demise of the woman, the family's daily routine is affected. Children suffer a lot emotionally. If she were a single woman and the only breadwinner in the family, the demise would cause a financial crisis that is not easily recoverable. Term insurance for women with the necessary rider benefits will help a family handle such situations at best. Taking precautions for financial protection is better than facing the consequences of uncertain incidents. Hence, as a primary and practical responsibility, a woman must purchase term insurance.
* Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you
1Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch
Insurance cover is available under the product.
The products are underwritten by Tata AIA Life Insurance Company Ltd.
The plans are not a guaranteed issuance plan and it will be subject to Company’s underwriting and acceptance.
For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
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