As per a recent survey, only 50% of women in urban India have insurance as opposed to 72% of men1. There could be many reasons for the stark difference in these numbers. One of them was the fact that earlier it was generally the men who earned for the rest of the family. A life insurance policy for the male member, in this case, could ensure the family’s security and well-being even after the unfortunate demise of the bread earner. However, times are now changing. Women today are educated, independent, and equal contributors to their households. Not only are women excelling in every industry like finance, politics, arts, business, IT, real estate, and more, but people are also changing their attitude towards women who stay at home.
With a progressive shift in society towards women, another aspect that needs attention is insurance. Unfortunately, life insurance among women is still not very common, despite the fact that many studies indicate how women are more prone to critical illnesses. Women are also likely to go through childbirth or suffer from health consequences as a result of it. Moreover, there still exists a pay gap in many industries which makes it harder for women to cover expenses than it is for men. Life Insurance presents itself as a vital tool for women.
5 Reasons Why Women Need Term Insurance as Much as Men
Financial security for the family
Life Insurance acts as income replacement and ensures that your family is financially secure even in your absence. As more and more women join the workforce and become earning members of their family, the need for insurance becomes paramount. Life insurance for women is also more cost-effective as women in general, have higher life expectancies than men. This often results in lower premium rates for insurance. Plus a life insurance policy also provides tax^ benefits that ultimately benefit the family financially. Another important aspect of life insurance is that it also covers children. You can just increase your life cover1 as and when you decide to have them.
Critical illness benefit against female organ cancers like breast & cervical cancer
With growing pollution in the air, adulterated food, and unhealthy lifestyles, health concerns are on the rise around the world. Health conditions like breast and cervical cancer are specific to women and have increasingly become more and more common in the last few decades. As per statistics, 30% of all cancer cases in India are diagnosed as breast cancer and 12% of all cancer cases in India are diagnosed as cervical cancer2. Health insurance policies for specific ailments (in this case, cancer), can be highly beneficial if such life-threatening health conditions ever strike you. This is especially useful for women who may have a history of such diseases in their family. A critical illness benefit along with life insurance offers a sum assured in case you are diagnosed with the said illness (no hospital bills needed, just a diagnostic report). This can be claimed to cover hospitalisation and other treatment expenses.
Invest for long-term goals
A study carried out in 2018 revealed that women do not invest as much as men. There was a staggering 40% difference between both gender groups when it came to investments3. While women are walking shoulder to shoulder with men in their careers, the lack of proper investments can leave them behind in the race. Insurance is a single tool to secure your family’s finances, save up on tax, and invest your money for long-term goals. Endowment plans, unit linked insurance plans, and money-back plans are all effective ways to invest your money and enjoy the benefits of life insurance at the same time. These plans are much more effective than the age-old custom of women saving money at home in cash.
Leave a legacy behind4
One of the major causes of worry for parents is the thought of their children when they are not around to protect them anymore. You can ensure a good lifestyle for your children when you are working and earning, but what happens if they were to lose you? Life insurance helps you leave a legacy behind for your children and loved ones. It helps them deal with the loss and carry on with their lives even in difficult times. This is particularly important for single mothers or female guardians. Even if you have a retirement plan in place, insurance can act as added support for the nominee.
A comfortable post-retirement life
Above everything and everyone else, life insurance for women guarantees~ a secure and comfortable life for them. The growing inflation, increasing probability of diseases, and general living expenses can make it difficult to survive on a single person’s retirement plan. However, with money-back or annuity life insurance plans, women can bank upon their policy for regular payouts or survival benefits after maturity. This can help couples lead a better standard of life post-retirement, without having to depend on their children for help.
To sum it up
The importance of insurance cannot be stressed upon enough, and it becomes even more important in the case of women. Life insurance not only helps you and your family in unfortunate times, but it also empowers you and gives you a sense of financial security throughout life. It is very important for women to realise the importance of getting themselves insured and for men to encourage the women in their life to do the same.
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~ Guaranteed benefits are payable subject to all due premiums being paid and the policy being in force on the date of maturity.
^ Tax benefits of ` 54,600/- (` 46,800/- under Section 80C & ` 7,800/- under Section 80D) is calculated at the highest tax slab rate of 31.20% (including cess excluding surcharge as per old tax regime) on life insurance premium under Section 80C of ` 1,50,000/- and health premium under Section 80D of ` 25,000/-. Tax benefits are subject to conditions under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.
1 Life Cover is the benefit payable on the death of the life assured during the policy term