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Women and Life Insurance
Gone are the days when women were in the shadows. Now at the forefront of every sector, women are co-breadwinners and even the sole breadwinners of families. Most women are also responsible for running their households and being involved in their family members’ lives, so much of the financial control lies in their hands.
However, despite the financial progress, women sometimes tend to forget about their own well-being and long-term financial planning. They also still fall behind in the insurance space, especially when it comes to life insurance. But there are ways women can close this gap, and take charge, especially when a life insurance policy holds immense benefits.
Benefits of life insurance for women
- Financial security
The main benefit of having a life insurance policy is the financial security it provides. In the event of a health crisis or your unfortunate demise, you can rest assured knowing your loved ones will be protected and have enough financial support in your absence. Suppose you are the sole breadwinner of your family. In that case, it is even more crucial to have a life insurance policy, as the entire burden of managing your household’s present and future expenses will be on you.
- Affordable premium rates
The cost of Insurance of female lives is comparatively a lot lower than that for men. This is because women have a higher life expectancy than men, so insurance companies offer life insurance for women at lesser premium rates. So, you can get the same or even better coverage at affordable premium rates, making it easy to maintain your current living standards and set aside enough for the future. There is also no age bar for buying women insurance plans. In fact, you can even get life insurance for a 60-year-old woman. However, age tends to increase the premium rate, so the earlier you buy life insurance, the better.
- Critical illness benefit
Most women insurance plans come with critical illness coverage. A critical illness is a terminal or fatal health ailment. The treatment of a critical illness can leave your family burdened and drain your savings. Moreover, the hospitalization and medical costs for treating critical ailment are much higher than general healthcare costs. A life insurance policy covers such expensive costs by providing a lump sum amount and reduces financial pressure. Also, in the event of your unfortunate demise, it keeps a sum aside for your family.
- Retirement goals
Life insurance works as a future safety cushion, especially in your golden years. It ensures that you do not compromise on your standard of living after a life of hard work. Even if your partner has life insurance that covers your retirement days, it is wise to get a separate insurance policy for yourself as a switch from a double-income life to a single-income one might not be easy. Moreover, you want to have enough to fall back on in case of an unforeseen health emergency, the tendency of which is more likely to befall during old age.
- Long-term wealth creation
As life insurance plans are linked to the investment market, you get larger cash value for relatively less premium rates, accumulated interest amounts and tax* benefits under the Income Tax Act, 1961. So, buying life insurance for women adds to the creation of long-term wealth. This wealth creation can be of use to fulfil life milestones like funding a child’s education, planning a wedding, running a business, buying and investing in property, etc.
- Family safety cushion
The primary concern for women, especially those who are mothers or have a family, is to keep their loved ones safe at all times. As a working woman, you might have a spouse, children, elderly parents, in-laws and other family members who might rely on your income for their expenditures. A life insurance policy aids you in the pursuit of keeping your loved ones secure by providing a financial flow in your absence. It also helps pay off any unpaid loans and additional payments.
Why is life insurance cheaper for females?
As is the general trend in life insurance in India, the premium for a female policyholder is lower than her male counterpart. Keeping all other factors constant, a woman will pay a lesser premium to get the same level of life insurance coverage than a man. This is primarily due to higher life expectancy and other health-related factors. The average life expectancy of females is higher than males in India. Also, when it comes to certain illnesses, like stroke, heart attacks and other cardiovascular conditions, women develop them later in life than men. Thus, the risk of insuring women is lesser than insuring a man in India, thereby giving cheaper life insurance for females.
Types of women insurance plans
There are many types of women's insurance plans specifically tailored to suit the demands of a working woman. To provide women with all-around financial support, Tata AIA Life Insurance offers some of the best life insurance policies for a woman.
To conclude:
The choice of the best life insurance for women depends on various factors. You need to consider your family’s requirements, their medical history, your financial short-term and long-term goals, the amount of your salary/ monthly or yearly income, and your age. After assessing these factors, you can find a policy matching your needs.
L&C/Advt/2023/Mar/0722
