Why Women Should Consider a Term Insurance Plan?

Life's unpredictability does not discriminate based on gender. The impact of losing a loved one affects a family just as deeply, whether it is a man or a woman who is no longer there. In today's world, where women are taking on their family's emotional and financial responsibilities just as much as men, term insurance is an essential financial safety net. 

Let's find out why women should consider a term insurance plan to protect themselves and their families from life's uncertainties.

Can women buy term insurance?

Yes, women can absolutely buy term insurance. In fact, many insurance providers offer plans specifically designed to match women's unique financial needs. These plans provide comprehensive coverage, offering peace of mind and financial security to women and their families. Irrespective of whether you are a single woman wanting to safeguard your parent’s financial future, a wife looking out for her spouse or a mother protecting her children, term insurance can provide the coverage you need. 

Term insurance is a flexible solution that adapts to your unique responsibilities and ensures your loved ones are financially secure in your absence.  

Why should women buy a term insurance plan?

Term insurance offers many benefits to women. Here's why women should consider getting a term insurance plan:

1. Flexibility to adapt to your life's changing needs:

As a woman, your financial responsibilities may shift over time. Term insurance gives you the flexibility to adapt to these changes. For instance, if you are single, you can name your parents as beneficiaries to help secure their financial future. As life evolves, you may get married or have children. Term insurance allows you to add new beneficiaries, such as your spouse and children to your plan.

Moreover, many term insurance plans let you increase the coverage amount at different life stages, like when you get married or start a family. This ensures that your policy always reflects your evolving financial needs and responsibilities.

2. Affordability that aligns with everyone's budget

Term insurance is widely known for being affordable, and women can benefit from even lower premiums. The average life expectancy for women is about 2.5% higher than for men. With a longer life expectancy, insurance companies offer lower premiums to women than men because of lower risks of untimely claims. 

This makes term insurance accessible for women across different financial groups, such as young professionals, self-employed, etc.

3. High sum assured to cover your side of financial duties

Women play diverse roles in their households, from contributing financially to managing day-to-day chores. Term insurance offers a high sum assured, ensuring that a working woman’s responsibilities, such as household expenses and children’s education, are covered if anything happens to her.

4. Financial support that goes beyond money

While term insurance primarily provides financial support, it can also add to your peace of mind. The payout from a term insurance policy can help families cope with a difficult time and provide them with emotional and financial comfort. It also helps the family maintain stability and allows them to focus on healing, knowing that their financial needs are taken care of.

5. Protection against debts

Term insurance becomes vital for women if they have taken on debt like a home or car loan. In the event of your absence, these financial obligations will be left to your loved ones to repay. Large debts, like home loans, can place a heavy burden on your family members.

Purchasing a term plan with coverage that includes your loan amount provides you with financial protection that can cover these debts. This way, you can ensure your family will not have to bear the financial strain. 

6. Extra savings through tax benefits

Tax savings are an excellent lesser-known advantage of purchasing term insurance for women. Premiums paid up to ₹ 1.5 lakh toward a term insurance policy are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. Additionally, the policy payout to the nominee is also exempt from taxes subject to conditions under Section 10(10D). 

To sum it up

Term insurance offers women more than just financial security – it provides peace of mind, a sense of financial empowerment, and even the chance to leave a meaningful legacy. It can help protect your loved ones financially. It can also help you save more through tax savings. Term insurance is a valuable tool, one that every woman should consider.