Term Insurance for women : Why it’s essential

Women take equal responsibility for their families, if not more. They have a duty to make their families secure in their absence. If you are a woman considering whether you should have a term insurance policy, you must rephrase the question a bit.

You should focus more on the coverage amount, possible add-ons and riders, and how soon you should buy term insurance. In this blog, we will answer as many questions as possible about term insurance for women.

Can women buy term insurance?

Yes, women can and must buy term insurance. Insurance companies have introduced specific plans for women’s unique needs that ensure comprehensive coverage and financial security for a woman’s family in case of a mishap.

So, whether you are a single mother looking to safeguard your child’s future or a homemaker trying to provide a security blanket to your family in your absence, insurance companies offer specialized plans to meet your exact insurance needs.

Why is term insurance essential for women?

Here are the most important reasons underlining why term insurance is essential for women:

1. Term insurance provides safety against unforeseen events. Such events can drastically impact your family; term insurance can be the perfect shield against them. Some of the common issues include sudden illness or permanent disability.

2. Term insurance gives a woman an economic buffer to meet different financial goals, such as repaying loans, child education costs, and household expenses.

3. Term insurance provides long-term stability and ensures uncontrollable events do not jeopardize financial goals.

4. Under section 80C of the Income Tax Act, benefits (associated with term insurance) help in better tax planning and management of female taxpayers.

Are there gender-specific benefits of term insurance for women?

A few term insurance plans cater specifically to women’s health needs. Some term insurance plans provide breast cancer coverage and other female-specific illnesses such as ovarian or cervical cancer. Autoimmune diseases are also more common among women, and a few term insurance plans can include add-ons to cover hospitalization and recovery period costs.

What are common challenges a woman might face without term insurance?

As a woman, you might need to rework your portfolio and personal financial goals without adequate security coverage (like term insurance). Further, there can be out-of-pocket healthcare expenses for women-specific critical illnesses. This can lead to debt accumulation.

Women often suffer interrupted career paths due to caregiving responsibilities. This might result in lower lifetime earnings and poor retirement savings. There can be a significant financial risk in old age without term insurance.

How do you choose the right term insurance plan?

You need to take care of the following points when choosing the right term insurance plan:

1. The first step will be to evaluate your financial needs. You must go for an adequate amount based on your marital status, number of dependents, age, and future goals. This should be an individual decision without including your partner’s financial position.

2. You must go for a plan that offers comprehensive coverage at an affordable premium. It is always advisable to compare premium costs online to select the best insurer for your needs.

3. Since insurance is a subject matter of solicitation, you must ask about all the gender-specific benefits available, such as conditions like breast cancer, maternity benefits, and other critical illnesses.

4. You must conduct your assessment and due diligence for the insurer’s reputation by checking CSR (Claim Settlement Ratio) and customer reviews.

5. You should ask for available riders and add-ons for females, if any, offered by the insurance company.

6. You must select a policy tenure that covers you during your most financially vulnerable years, ensuring protection when needed.

Summing Up

If you are a woman reading this, remember that your role in family and society has exploded rapidly in the past few decades. The percentage of working urban women has increased rather drastically in India. Since you have to take care of all the responsibilities like your male counterparts, if not more, you must plan for future security as well.

Unpredictability does not differentiate between genders. While remembering this, go for term insurance that protects your family’s future in case of mishaps.

FAQs

Do women need term insurance?

Yes, term insurance is crucial for women, especially as they increasingly become their family’s primary earners and financial planners. It ensures financial security for dependents and helps manage unforeseen circumstances effectively​

What age is ideal for women to purchase term insurance?

Women should consider buying term insurance early in life, as this can result in lower premium costs and longer coverage periods. There is no specific ideal age, but starting early is beneficial​

What types of term insurance are suitable for women?

Women can opt for plans that offer coverage for gender-specific health issues like breast and cervical cancer and those that provide education funds for children. Riders for critical illnesses or disability can also be added for comprehensive coverage​

Can a housewife purchase term insurance?

Yes, housewives can also purchase term insurance using their spouse’s income as proof. This helps provide them security against life’s uncertainties, ensuring they can manage financial responsibilities even in their absence​