Like men, women too need insurance to safeguard their lives as well as provide protection to their family. True, life insurance cannot keep one alive for ever, but it can certainly help one give financial protection to one’s family as well as meet one’s financial goals of life. If you are trying to build your own dream empire, then you need to think of protecting it too without getting dependent on others.
“In India, more than two-third women are earners or co-earners for their families, but when it comes to the financial protection they rely on their spouse,” says Santosh Agarwal- Head of Life Insurance, Policybazaar.com.
Life insurance can help women in various ways, some of which are mentioned below:
Provide lump sum money
Despite the fact being that life insurance provides you protection, it also helps in creating wealth for your future financial goals. Don’t get into the old thinking that if you have taken an insurance policy, then something will happen to you. Rather think that if you are taking an insurance policy, something will add on to your life and that is ‘protection and wealth creation’.
Protect household finances
Think about your family where right from cooking food for your children to getting them ready for school or office and then helping your husband in financial matters are a routine work for you. Women, thus, play many roles in their family. Similarly, a life insurance cover does not only provide you protection but also helps to manage your expenses when you need money, especially at the time of child’s higher education or child’s marriage.
You may also watch:
Retirement & Estate planning
Most of the insurance plans mature at the time of retirement and that is when you are in much need of money to pay the outstanding debts or meeting any medical expenses. Therefore, the amount generated by an insurance plan helps you a lot in meeting those expenses.
Moreover, plans like whole life insurance plans can create a financial legacy for your children. Even other insurance plans can help in generating wealth for your dependents, which can be included in your Will during estate planning.
Why term insurance?
Some people think that term plans do not provide any benefit during one’s lifetime. So, why to buy them? But this perception is wrong. Term plans not only provide the maximum cover to protect one’s family after one’s death compared to other insurance policies, but some plans have also come up with various other benefits. For instance, they provide benefit in some special cases/diseases.
“Term Plan is the most important insurance plan for earning individuals. The truth is women nowadays substantially contribute to managing household finances. Therefore, it is equally important to insure their lives to provide financial protection to the family in case of any mishap. Typically, if the woman has dependents, she must opt for a term insurance plan to cover the loss of income,” says Agarwal.
Some of the benefits are mentioned below:
The amount is paid in case of disability due to an accident or any other cause as per the companies terms and conditions. In that scenario, you can get a monthly income of a certain amount over a period of time.
This add-on also has an incremental income option, where the monthly income increases by a certain fixed percentage at the end of every year for which the income is assured.
If any critical illness is diagnosed, then in such a case you can get a lump sum amount up to Rs 20 lakh. Critical illness riders are defined uniquely by each insurer. Therefore, one must check before opting for it.
You may also watch:
Double sum assured
Taking a rider of double sum assured in case of an accidental death will increase your sum assured by two times. For instance, if you have taken a cover of Rs 1 crore through a normal term insurance policy and have added this additional rider to it, then in such a case, at the time of accidental death, the nominee will be paid Rs 2 crore instead of Rs 1 crore.
Special disease/disability rider
Some of the term insurance plans cover a special disease like cancer for a specific period between the whole term of cover. In some other term insurance plans, the insured’s nominee/s get a payout over and above the sum assured if the insured’s death or disability happens due to an accident.