Financial Security: Your Essential Life Insurance Guide
Discover how life insurance can protect your family’s future, with expert insights into choosing the right plan and maximizing your coverage. Secure peace of mind with this comprehensive guide!
Key Takeaways:
- International Women’s Day is associated with the colour purple which symbolises dignity, justice and loyalty towards the women’s movement.
- It also marks a call to action for accelerating gender parity.
- As per IRDAI, women make up 34% of the total insured population in India.
- Term plans and Unit Linked Investment Plans are considered the best insurance options for women.
- Women enjoy the benefit of lower premiums which makes life insurance a good option for retirement planning.
Women play crucial roles in the lives of those around them. Their contributions to both family and society are invaluable and cannot be overlooked. International Women's Day serves as a significant occasion to celebrate the achievements of women from all walks of life. It is a day dedicated to raising awareness about gender equality and empowerment, highlighting the ongoing journey towards creating a more equitable and inclusive world for all. This year it focuses on the theme Invest in Women: Accelerate Progress and targets the disempowerment of women in matters of economy. This theme is under the previous campaign theme of Inspire Inclusion where the aim was to include women in important matters and invoke gender equality.
However, amidst all the contributions and changes in the mindset of society, women still take a backseat in protection and security, both financially and health-wise. This is where life insurance plays a crucial role.
Why Do Women Need Life Insurance?
Life's unpredictability underscores the importance of safeguarding the family's financial well-being. Whether the woman is the primary breadwinner or a significant contributor to the family's finances, prioritising life insurance is essential. By obtaining life insurance, the policyholder can provide a vital source of financial security for their loved ones in the event of their passing.
Life insurance makes sure that your loved ones are taken care of if you are unable to continue providing for them, whether you are a working woman, a business owner, a parent, or a spouse. Insurance providers in India offer life insurance to women as per their needs and requirements. Irrespective of what stage and role you are in your life currently, life insurance has multiple benefits for you. Let us discuss these categories in detail.
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Working Women
A well-structured life insurance policy serves as a cornerstone for maintaining financial stability, particularly in the face of unforeseen events such as the death or critical illness of a spouse. For working women seeking to secure their financial future, investing in pension plans emerges as a prudent strategy.
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Young Mothers
For a child’s better education and future, young mothers can start early savings by investing money every month in child plans. It is a great way to provide their children with a stable future.
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Homemakers
While homemakers do not have a conventional salary, their contribution must always be addressed. Their everyday tasks from managing households to providing emotional support, cannot be quantified. Thus, life insurance ensures that, in such unfortunate circumstances, the family has the financial resources to cover immediate expenses and maintain their standard of living.
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Women Planning for Retirement
As women age, prioritising retirement plans becomes increasingly crucial. Incorporating life insurance with a cash value component into one's financial strategy can prove to be a valuable asset, offering supplementary financial security throughout retirement.
What are the Benefits of a Life Insurance Plan for Women?
Given the evolving roles and contributions of women, prioritising their financial security this Women’s Day 2024 through life insurance is crucial.
Here are some of the benefits of investing in life insurance for women to explore:
- Financial Safety Net: Life insurance offers financial security to one's family in the event of the insured's untimely demise. Upon the policyholder's death, the insurer pays out a death benefit to the designated beneficiaries, assisting them in covering various expenses.
- Lower Premiums: Women may qualify for reduced term insurance premiums relative to men due to their extended life expectancy and decreased susceptibility to certain health issues.
- Wealth Creation and Savings: Investing in a life insurance policy is not just an expense; rather, it is a strategic investment option that can help in wealth creation. Numerous investment-linked insurance plans, like ULIPs, allow women to participate in the financial market while securing their future.
- Tax Benefits: Life insurance policies provide tax benefits, as premiums paid are eligible for deductions. This dual advantage of financial protection and tax savings makes life insurance an appealing aspect of a woman's comprehensive financial planning strategy.
- Contentment: The biggest priority for a woman is the safety and security of her partner and children. A life insurance policy serves as a safety net for children, spouses, and parents who need care.
- Legacy: As many women manage their family's finances, preparing for unforeseen circumstances is crucial. Whole life insurance plans serve as a means of wealth accumulation for future generations, extending up to age 100.
Must Read: What is Critical Illness Insurance?
Did You Know?
In the FY 2022-23, women were issued 97.38 lakhs life insurance policies, constituting 34.20 per cent of the total policies, which amounted to 2.84 crore policies.
How to Choose the Right Life Insurance Plan?
To choose the best life insurance policy as a Women’s Day special gift, here are some of the factors that can be considered:
- Coverage Amount: Before applying for a life insurance policy from a particular lender, an insurer should consider the financial needs of your family, like educational fees, loans, and day-to-day expenditures. A thorough analysis of these details will help them in determining the total coverage amount.
- Policy Duration: It is crucial to factor in the duration of coverage, aligning it with both your financial objectives and the age of your dependents. Opting for longer-term policies can often yield greater value in the long run, ensuring sustained financial security for your loved ones.
- Type: There are numerous types of life insurance policies available in the financial market, like ULIP, term insurance, whole life insurance, etc. An insurer must choose the most suitable types based on your requirements and budget.
- Riders and Add-ons: Assess additional riders or add-ons to augment your coverage, such as critical illness riders, accidental death benefit riders, or waivers of premium riders. These add-ons can provide additional layers of protection and financial security, addressing potential risks and unforeseen circumstances.
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