3 Good Term Insurance Policy For Women4

When it comes to financial security for women, there are certain parameters that must be duly taken into account and term insurance is one such parameter. A woman may have dependent children or any other dependent family members and their future security figures among the top priority list.  For a woman, term insurance may be either a group insurance cover or an individual one. Therefore, it is essential that proper care is taken while choosing either one of these as they have their respective pros and cons.

In actual practice, many corporate organizations offer group term insurance plans for their employees to safeguard their monetary strengths. Significant purpose of coverage is then offered at standard rates that is meant for the exclusive benefits of all employees. A group term insurance policy is a long term beneficial contract and all the employees are eligible for it from the time of their joining till they retire (the upper age capping is usually 70 years). Such a policy does not entitle the employee to any proceeds (sum assured) upon surviving the term but provides the payout of lump sum proceeds in the event of demise. The claim benefits are eligible for tax exemption under Section 10(D) of the Income Tax Act, 1961.

Top 3 Term Insurance Plans for Women

Women today have become financially independent. They are making executive decisions at home and at work. But, they may not always control their financial investments. Luckily, we’re here to help. If you’re looking to purchase a term plan for yourself and secure your family’s financial future, here’s a look at the top 3 term insurance plans for women:

1. Term Plans with Maturity Benefit

Ideally, working women should opt for term plans that offer a maturity benefit. This way, if you happen to outlive the policy tenure, you will get a windfall of money that you can either invest again or spend as per your preferences. The maturity benefit will help you get back all the money that you paid as premiums for the upkeep of your term plan over the years. It’s a great way to save some additional money for your retired years.

2. Terms Plans with Critical Illness Cover

When looking for a term plan, you must choose an option that provides a payout if you are diagnosed with a critical illness. Most critical illnesses can be difficult to deal with financially. The treatment of a disease like cancer or diabetes could end up burning a huge hole in your pocket. With the right kind of term plan, you could get a payout from the plan if you were ever diagnosed with a covered critical illness. The money you receive from the payout will help you cover the cost of treatment while also replacing any lost income as you get treatment and recover.

3. Group Term Plans

Many employers today offer term insurance to their employees. These plans are incredibly affordable and while they do not offer maturity benefits, they do provide a lump sum payout to the nominee if anything were to happen to you. If your employer offers to cover you under such a plan, it’s always a good idea to agree. This is because this plan will provide additional support to your family members if anything were to happen to you. Of course, we would advise using a group term plan only as a supplementary insurance policy. You should always have another plan to keep you covered in case you decide to change your job or retire.

Conclusion

A term insurance policy is renewed annually and comes with a grace period (mentioned in policy documents). The employer can save on taxes as the premium payable towards the policy counts as a business-related expense. Thus, such a coverage option proves to be completely beneficial for the organization as well as the employees.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.