Today, women take on many tasks and responsibilities, serving as the principal breadwinners for their families. However, few people understand the need for life insurance for women. In unexpected instances such as if you pass away, life insurance for women helps alleviate the financial stress that a woman’s family may face in her absence. Term insurance for women is simply a type of life insurance plan that provides specific benefits to female consumers. These term insurance plans not only provide financial protection to women’s families but also assist them in building wealth for the future and helping them save on their annual taxes following current tax rules. To ensure women’s participation in the insurance sector, many insurers provide unique perks to their female consumers, such as lower insurance premiums, and more. If you are still in the conundrum of whether to buy term insurance for Women, here are the top benefits that could help you make the decision.
How is life Insurance for Women beneficial?
Here’s a list of features and benefits you can get by obtaining term insurance for women:
Financial Security for Families: Term insurance for women can help you ensure your family’s financial stability. This is especially useful if you are the primary breadwinner for your family. This helps to financially protect your dependent parents, husband, in-laws, and children. In the event of an unexpected incident, your life insurance policy will pay out a death benefit to your family, allowing them to continue their standard of living. This ensures that all of their dreams are realized even when you’re not present.
Long-Term Savings: A life insurance policy allows you to save money for future goals. This way, you don’t have to rely on loans and credit to meet your future financial commitments, including caring for your parents and children or establishing a new venture.
Create wealth for the future: You can save for your future ambitions by investing in investment-based life insurance plans that provide market-linked returns or bonus-based rewards. Similarly, a whole life insurance plan not only comes with a cash component but it also covers you for the rest of your life (up to 99/100 years old).
Affordable premiums: Premiums for term insurance for women are significantly lower than those for term insurance plans for males. For example, women can save up to 20% on term insurance compared to men. This is because women typically have a longer life expectancy than men.
Additional Benefits: You can supplement the basic coverage of your life insurance for women by purchasing optional riders at a low cost. With these riders, you can acquire coverage against terminal disease, critical illness, accidental death benefits, permanent disability benefits, waiver of premiums, etc.
Additional Coverage for Family: If you are a housewife and your husband already has life insurance, it may seem unnecessary for you to purchase life insurance as well. Even if your husband already has life insurance, purchasing the best term insurance for women might give additional coverage for your family or children in your absence.
Debt and Liabilities: If you have unpaid loans and debts, your loved ones should not be responsible for repaying them in your absence. The policy cover can secure their life savings by paying off these loans and debts.
Helps you to secure Retirement Life: As a woman, preparing your own retirement allows you more financial freedom to address your requirements in your later years. Different types of life insurance for women such as pension plans or term insurance plans with a return of premium might help you safeguard your future by providing payouts after retirement. With enough financial resources in retirement, you may support your own well-being while also supporting your family.
Medical emergencies: If you add the riders to your life insurance plan, you and your family can be protected against critical illnesses, accidental death, disability, and other medical situations.
Tax Saving Benefits: You can deduct income taxes on the premiums you pay and the maturity benefits you receive from your life insurance policy. Life insurance for women can help you save money on your annual taxes under sections 80C and 10(10D) of the Income Tax Act of 1961, depending on the current tax rules.
Which women should purchase life insurance?
You should consider purchasing term insurance plans if you are:
Working Professionals: Women in the workforce make major contributions to their families’ income and financial stability. Life insurance protects their dependents from financial difficulties in the event of their death, providing coverage for outstanding bills, education expenditures, and everyday living costs.
Stay-at-Home Moms: Stay-at-home mothers may not receive a traditional income, but their contributions are vital. Their function varies greatly, from handling domestic responsibilities to giving emotional support. Life insurance can provide financial security to cover the cost of hiring help with domestic tasks in the case of their absence.
Single and Independent Woman: Single women should prioritize life insurance. This guarantees that their financial legacy is maintained following their preferences, as well as providing a safety net for any dependents or charitable causes they support.
Entrepreneur and Business Owner: Women who own businesses or are entrepreneurs should include life insurance in their risk management plan. It may keep corporate assets, cover existing obligations, and provide a smooth transition in the event of their death.
Women with Dependent Family Members: Whether caring for elderly parents or helping siblings, women with dependent family members should prioritize life insurance. This provides a financial buffer for their loved ones, ensuring long-term support and care.
Divorced and Separated Woman: Life insurance is extremely crucial for women who have been divorced or separated, especially if they have children. It serves as a financial safety blanket, ensuring that your children’s necessities and education are met. Life insurance also helps cover any outstanding financial obligations you may have. It’s like having an extra layer of support to make sure everyone is taken care of, especially during difficult times.
Woman Planning for Retirement: Retirement planning becomes increasingly important for women as they get older. Life insurance with a cash value component can be an excellent investment, giving additional financial stability in retirement.
Wrapping Up
A life insurance policy or term insurance plan for women not only gives them the piece of mind that their loved ones are financially secure in the event of an emergency, but it also allows her to build wealth for their dreams and objectives. With these programs, you may also claim tax breaks under the current tax regulations.