Term Insurance is the best way of ensuring the financial security for your family and loved ones. In today’s world where the financial contribution of women is equally important as that of men, insurance is also equally necessary for women as it is for men. Term insurance is the most common type of insurance people buy because it’s affordable and provides the pure life cover.
A term plan is a simple insurance plan that will provide the benefit if the policy holder dies while the plan is active. Term Insurance plans are also known for their affordable premium rates. Typically, a term plan does not offer any survival benefit at maturity of the policy. With a Term Return of Premium Plan (TROP), the insurance company will pay back the premiums at maturity of the policy, in case of your survival throughout the policy term.
Also, term insurance offers a chance to save up to 1.5 lakh of taxable income because it provides tax benefits under article 80C of the income tax act. Since women are now equally participating in the monetary aspect of the household, investing in a good term plan will ensure the financial stability of the dependents in her absence.
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How much Term Insurance is Needed?
Some factors play a major role in deciding how much insurance is needed. Annual income is one of the most important ones. Calculate your annual income; it will give you an idea of as to how much insurance cover is needed.
Financial goals: For a single mother, it can become difficult to decide the amount of cover needed without assessing the financial goals. Children’s education, college, marriage and other important things are to be taken into consideration while deciding this.
Financial liabilities: It is always important to make sure that your cover is bigger than your financial liabilities, such as debts or loans etc.
Key Aspects
Term policy for women provides with many benefits to women including lower premium rates, critical illness cover. It also provides one with cheap premium for non-smokers who maintain a healthy life style.
Lower Premium Rates for Women
The premium rates are generally lower for women. This is because women have longer life span than men. It might be a few years, but the few years make a lot of difference to the insurer.
In addition to this, studies reveal that women have a healthier life style than men, which makes investing in women less risky as compared to men. Hence, the premium rates for women are cheaper.
Insurance has become a must have for all women irrespective of their marital or their employment status. Before choosing a term insurance plan, it is essential to understand the benefits it has to offer, assess your needs and then pick a plan that fulfills the financial security needs for the family and loved ones.
Know About Term Plans for Women
Blow mentioned term Insurance Plans for women include:
SBI Life Smart Women Advantage Plan
SBI Life Smart Women Advantage Plan comes with the comprehensive life insurance coverage. This women-centric plan also offers the critical illness cover along with savings component.
HDFC Life Smart Woman Plan
HDFC Life Smart Woman is a ULIP plan that caters to different financial needs of a woman. This plan ensures that your will attain savings during any eventuality of life and get the life cover to provide financial security for your family.