Can Women Purchase Term Insurance Plans?

Gone are the days when women were considered as homemakers only. Today in this most competent world women are in every field. With rising living costs, both women and men play an equal role in earning household income. Taking all this into consideration, term policy helps a woman to become a financial help at the time of crisis.

What is Term Insurance Policy?

A Term insurance policy is one of the most affordable and purest forms of life insurance. A policyholder is required to pay a fixed amount (premium) for a specific amount that is known as sum assured. In the situation of the unfortunate death of the policyholder during the term of the policy, the nominee gets the sum assured.

Getting a term insurance policy is the first step towards building a good financial plan. A term policy should not be seen as an investment instead it works as financial protection for various uncertainties of life.

Being a woman, you may have few questions related to term insurance, which are:

1. Being a homemaker, what will be the advantages of the term plan for me?

   The loss of a family member is irreplaceable and if the family member is the homemaker, then the complete responsibility comes to the partner. With the day-to-day responsibility of the children, your partner is burdened financially as he/she will not be able to concentrate completely on his/her work. In this situation, if a housewife or homemaker is insured with a term insurance plan, then your partner will be able to manage the household work by cutting his working hours. With a reliable term insurance policy, your long-term financial obligations like children's education and a loan can be taken care of easily.

2. Do I require having a term plan, even if my husband has a term plan?

   A term insurance policy should be taken after considering your total family income. The contribution of your income also plays a significant role in the total income of your family. So, the basic idea behind this is to understand the impact of the loss of your income on your family. Therefore, there has to be some provision of its replacement and the best way to do so is a term insurance policy. A term plan provides financial help to the family of the policyholder in case of his/her sudden demise.

3. What Process Should I Follow to Choose a Term Plan?

   In order to purchase a term plan for women, it is necessary to see the following points in your policy:

   • The insurer must be reputed.

   • Search for a plan that offers added benefits for females.

   • The term policy should have a good claim settlement ratio.

4. Benefits of Term Plans for Women

   Let's take a look following benefits of term insurance to female customers.

   • Offers special premium rates for women.

   • Provides comprehensive cover with the option to select Critical Illness Cover rider and some other riders with the term plans.

   • Attractive rate of premium for non-smokers who maintain a healthy lifestyle.

5. Cost of Term Insurance Policy

   The primary factors on which a term insurance policy depends are the term chosen by you, your age, and the insurance cover selected. A term insurance cover of Rs.1 Crore for a woman of 30 years for a term of approximately 30 years will cost approximately around Rs.10, 000 to Rs.6, 500 per year. In this way, the cover provided by the term insurance plan is negligible compared to the peace of mind and financial cover provided by it.

Why Women Need Term Insurance? 

1. Family’s Financial Security 

   Life insurance acts as an income replacement and makes sure that your loved ones are financially secured and protected even in your absence. As more women are joining the workforce and become sole earning members of their families, the need for insurance becomes a necessity. Life insurance for women is cost-effective as they have a higher life expectancy than men. This results in low premium rates. Along with that, a life insurance plan also offers tax benefits that help the family financially in the future. 

2. Critical Illness benefits against cancers related to a female organ such as cervical and breast cancer 

   Some of the health conditions such as cervical and breast cancer are more specific to women and are becoming more common in the last few years. Health insurance plans for specific diseases are highly beneficial if such kind of health condition hits you. This is specifically useful for women who may have a history of such ailments in their lineage. A benefit of critical illness along with life insurance provides a sum assured amount in case of diagnosis of certain illness. Under this, one can cover hospitalization and other expenses of treatment. 

3. Long Term Investments 

   Insurance is a single tool for women that helps secure the family’s finances, save up on tax and invest your money for long-term objectives. 

4. Comfortable Post-retirement life 

   Term insurance for Women guarantees a comfortable and secure life for them. The rising inflation, increasing chances of ailments, and basic living expenses can make it tough to survive on a retirement plan of a single individual. However, using an annuity or money-back life insurance policies, women can invest for regular payouts or survival benefits after the maturity time. This helps families to lead a comfortable life after retirement without depending on their children for help. 

The Bottom Line

As the awareness towards the term insurance policy for women increase, then more and more women will purchase it. However, it is recommended not to delay purchasing a term plan for you (as a woman) whether you are working or not. The main reason to purchase this plan early is lower premium rates because the cost of a term plan depends on the age of the policyholder. In this way, get a term life insurance for yourself to safeguard the future of your loved ones.