Income Replacement Insurance for Women

What is Income Replacement Insurance for Women?

Income replacement insurance for women is a term insurance plan that offers the death benefit to the family of the female policyholder in regular installments as a replacement of income in case of the female policyholder’s death. These plans are best suited for working women and housewives as the payout from these plans can help the family financially recover from the loss of a loved one. The nominee may use the benefit amount to pay off any remaining loans, pay monthly expenses, or pay for the child’s fees.

Note: Know what is term plan first and then buy a term plan for your loved ones.

Note: It is suggested to calculate the term plan premium on the term policy calculator online tool by Policybazaar before buying.

How Does Income Replacement Insurance for Women Work?

Let us understand how income replacement plan for women works with the help of an example:

Kriti bought a 1 crore term insurance as her income replacement plan to secure the financial future of her dependent parents. She opted for the policy to cover her till 60 years of age and selected the death benefit payout option as monthly income. Kriti, unfortunately, met with a terrible accident in the 9th policy year, and her dependent parents were left emotionally and financially unstable. Thankfully, they submitted the claims form and started receiving the monthly payouts to help take care of their financial needs. They used the amount to pay for the funeral costs and other financial obligations. 

What are the Benefits of Income Replacement Insurance for Women?

Here is a list of the benefits of buying income replacement plans for women in India:

• Death Benefit for the Family: An income replacement term plan ensures the financial future of the woman’s family in her absence by offering a guaranteed death benefit. The family can use the benefit amount to pay for financial obligations like rent, child’s fees, or any other expenses that may arise.

• Take Care of Future Inflation: With income replacement insurance for women, your family can take care of future inflation and live a financially stable life in your absence.

• Peace of Mind: An income replacement plan offers you much-needed peace of mind, as it guarantees the financial stability of your loved ones in the event of your untimely death.

• Tax Benefits: Term plan with income replacement insurance for women offers tax benefits u/s 80C and 10(10D) of the Income Tax Act, 1961.

Note: You should also check the term life insurance benefits if you are planning to purchase the term insurance plan.

What are the Key Features of Income Replacement Insurance for Women?

The following are the key features of income replacement term insurance for women offered by Indian insurers:

• Affordable Premiums: Income replacement plans for women are available at the most affordable premiums compared to other types of life insurance. This allows you to get long-term protection at low premiums.

• Large Sum Assured: With an income replacement term plan for women, you can secure a large life cover amount for your family in your absence. The ideal cover amount for your profile depends on your age, current annual income, and existing life cover.

• Long Term Coverage: An income replacement for women provides long-term coverage that can be extended till 99 or 100 years of age. This way, you and your family can stay protected under the plan for the long term and live a stress-free life.

• Premium Pay Options: You get the option of selecting the most convenient premium payment options like monthly, quarterly, semi-annual, or annual premium payments. 

• Quick and Easy Claims: Insurance companies in India offer a quick and easy claim settlement. Nominees can simply submit the filled-out claim form with attached documents to initiate the claim process.

Wrapping it Up

Income replacement term plans for women should be an essential part of every woman’s financial portfolio. You can use the income replacement plan to ensure your family's financial stability in case of an eventuality like death, disability, or illness. However, before buying the most suitable income replacement term plan for women, you should always compare the available plans and select the plan best suited for your profile.

Note: Check out the best term life insurance in India and choose one that suits your requirements.