Importance of Term Insurance For Working Women

Women have always played a key role in household finance in India. While most women believe in saving, very few will actually buy life insurance for themselves or their families. Women, especially working women, also need life insurance. There can be no value in the life of a loved one; however, securing a life insurance policy can guarantee the financial security and stability of your family in your absence. Now with increased exposure and awareness through various channels,We are seeing a major shift in the way women opt for insurance and other financial instruments over FDs.

Importance of Term Insurance For Working Women

There are a number of reasons why Insurance is important, not only men but everyone. Everyone has the right to secure their lives. Below are the many reasons why it is crucial for working women to go for term insurance.

1. Financial Protection

As working women, financial responsibility is growing to a great extent. Whether it is in marriage or in care of the parents, the financial support provided by women cannot be compromised. It is also similarly critical that women should not shy away from enrolling in insurance plans and, in the case of an untimely death, financial dependents would be taken care of.

2. Pay Off Debts

Women are gradually availing educational loans, home loans and business loans. Therefore, a term contract will guarantee that dependents could pay off their debt with insurance money. Term plans can also be related to current debts and, in the event of an untimely death, the insurance provider pays off the debt with the sum assured.

3. Tax Benefits

Working women still have to pay taxes, even though they have a distinct tax bill. A term insurance policy would help them save their tax benefit considerably under Section 80C of the Indian Income Tax Act, which allows for the inclusion of the tax deductible premium payments. In addition, gain after maturity from life insurance is also excluded from tax under Section 10(10D) of the Act.

4. Retirement Plans

Planning for retirement needs to be begun as early as the first job, and with a rise in purchasing power and inflation, everyday spending at the time of your retirement will be sky-high. A term insurance policy is an important beneficial step in your retirement plan. Term Insurance with maturity benefits can support additional old-age expenses and allow for a stress-free retirement.

5. Life Stage Events

Getting married and raising a family is a big commitment and costs a lot.Therefore, planning and acquiring a term insurance policy with a maturity advantage of maybe 10 or 20 years may serve the function of providing a financial cover when necessary.

6. Wealth Creation

A term insurance policy lets women build money. Term Plans with maturity rewards provide several extra incentives to help you purchase an asset or even leave a legacy behind for your own generation to prosper.

7. Critical Illness Cover

You could use several riders or add-ons with certain term insurance plans. One such rider is a critical condition cover, where the insurance provider pays a lump amount to the insured for the treatment of critical diseases such as cancer, heart attack, stroke, coma, etc. This guarantees financial independence for women, even in the event of a medical emergency.

Conclusion

When more women enter the workforce and become breadwinners, their income needs to be protected. With changing trends, women are now heading towards financial independence by pursuing insurance and other financial instruments as a tool to improve their notion and habit of long-term savings. Not just working women, but also housewives, single women (whether widowed or divorced) must also be covered to guarantee financial stability at different points of their lives.