The path to financial security begins with securing one’s future against unseen setbacks, and what better a way to ward off these setbacks than to invest in a robust term insurance plan. Irrespective of gender, everyone needs a term plan to secure their dependents beyond their lifetime. While India is home to 48.4% female population, historically men have assumed the role of financial planner in a family.

In recent years, the role of women in India has undergone an evolution. Women have emerged as strong pillars of society, seamlessly juggling multiple roles. Amid these multifaceted responsibilities, the need for securing one’s financial future through astute decisions has never been more apparent.

It’s often presumed that only the onus of women making monetary contributions to buy a term insurance plan. The reality is homemakers are also equal contributors in a household – whether or not that can be measured in monetary terms. Keeping up with the changing norms, the insurance industry continues to build products that can adequately cater to women’s dynamic needs. As more women become primary earners or contribute significantly to household income, having a term insurance policy becomes paramount. It guarantees that in the unfortunate event of the policyholder’s demise, her dependents will have the financial resources to maintain their quality of life and pursue their aspirations.

Here’s how women can ensure they have adequate term insurance coverage:

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Evaluating coverage 

In India’s socio-cultural environment, conversations around death are still a taboo. In this case, evaluating coverage or, in a way, attaching a price to life might get even more difficult. While nothing can replace the loss of life, a strong financial backing can surely take care of the economic adversities for the dependents. Women should evaluate their financial responsibilities and obligations, and also take into account factors like outstanding loans, children’s education and marriage, etc.

With rising inflation, the coverage should adequately provide for the family needs to maintain the family’s lifestyle and safeguard their future. Whether you are a working woman or a homemaker, you must opt for a range of Rs 1 crore to Rs 5 crore to accommodate the future financial needs. It is also important to note that the premiums for women buyers are up to 30% cheaper when compared to males for the same term cover.

Independent term plan for homemakers

The role of homemakers was traditionally perceived to be adding no financial value to a household. However, this problematic perception couldn’t be farther from the truth. In reality, a homemaker’s efforts in maintaining and running a household immensely contribute to the family’s finances. The recent launch of independent term plans for homemakers is a thoughtful and monumental step in ensuring equality in financial protection. Earlier, homemakers had to depend on their spouse’s term policy. Now, they can independently secure the future of their dependents basis the household income, without having to rely on their spouse’s term policy. The coverage ranges from Rs 50 lakh to 1 crore and all they need is to have a household annual income of Rs 3 lakh and a 10th or 12th pass educational qualification of the homemaker to make the plan more inclusive. Homemakers must empower their dependents with this term plan. 

Assessing your stage of life

Term plan needs evolve with every stage of life. So, it helps to decide the coverage accordingly. For instance, when you are 25-30 and single, you can opt for a Rs 50 lakh coverage. However, you must remember to opt for Life Stage Benefit rider to make sure you can increase the coverage in the future as your responsibilities increase. Similarly, once you’re more settled in life at 35-40 years, having at least Rs 1 crore coverage is a must. One must also remember to follow the rule of having a coverage of 10 times the annual income. If you’re someone nearing retirement age and thinking your premiums go to waste if you survive the term, it’s not necessarily the case. Now, term plans come with a one-time exit option that allows you to surrender your policy and get all the premiums back excluding GST. What makes these plans attractive is that they are priced the same as regular term plans and hence, value for money, whether you end up using the coverage or not.

Research and comparison

It’s crucial to conduct your share of research before closing in on any plan. Online aggregators have made it far easier and transparent to compare features, benefits and exclusions and make the best suitable choice. Online tools also come in handy to calculate important parameters like human life value to accurately gauge the coverage you need.

Riders to cover against critical illnesses like Cancer

With the changing lifestyle, women are becoming more prone to certain major illnesses like cancer. Critical Illness riders provide an additional sum assured cover in case you are diagnosed with a critical ailment. This helps provide coverage for immediate medical expenses and helps cover financial loss due to possible loss of income.

Term insurance plays a pivotal role in women’s life and financial planning. By selecting a policy that aligns with their life goals, women can protect their aspirations and ensure that these dreams are realized even in their absence.

(By Santosh Agarwal, Chief Business Officer – Life Insurance, Policybazaar.com. Views are personal)