Life Insurance for Women

Life Insurance for Women


In its simplest form, life insurance means protection against risks in life. While men might not give it due attention, risks also exist in a woman’s life, sometime even more than a man’s life.

Even though a woman may not be considered a breadwinner in the conventional manner, she also needs to protect against life’s risks, and thus needs life insurance.

In today's world, a woman's contribution to the finances of a family cannot be ignored. Besides, they provide much more than men in household matters. But women are seen to be holding themselves back when it comes to buying life insurance. 

While most men are aware of the fact that life insurance can be an emergency fund and help meet one's objectives or protect their families, it is time women know their importance in their loved one’s lives.  They need to get themselves insured, in fact, adequately insured.  

Why women must buy life insurance?

The biggest reason a working woman must buy life insurance is because she is adding to her household income. Of course, about 100 years ago, the value that women were providing to the home wasn't considered worth insuring, but not anymore. Today the woman’s salary provides equally for the family, sometimes even more. 

Now as a woman, you can actually put a number to the value you provide to the household and help your family to continue living at their current lifestyle.

So the reason you need a life insurance is to ensure that your family has the income to stay afloat even if something happens to you – like permanent disability, accident, or untimely death.

Now, if you are a single, working woman, the reason you must purchase life insurance is when you have ageing parents (or any other dependents like younger brother or sister) that you're caring for. 

What kind of insurance women should buy?

1. Term insurance: If you are young, a term insurance can provide you enough cover at a reasonable cost. In event of your death, your immediate family will receive sufficient amount to maintain their standard of living, repay liabilities, provide lump sum for important milestones and even get over the emotional setback.  

2. Child insurance: If you have a child, you may consider a policy to save money for his or her higher education plus also serve the insurance purpose .Such a policy will ensure a regular cash flow coming in at specific points in time, covering the education needs or support your child’s aspirations.

3. Retirement insurance: Apart from ensuring financial support in case of your death, or for funding your child’s higher education, a pension plan or ULIP can also help you plan your retirement well. Such a plan will help you accumulate wealth over the time and help you fund your retirement years.

Reasons to buy Term Insurance online

1-Affordable (a most cost-effective form of life insurance) – Online term plans are much cheaper as compared to offline term plans. This is because there’s no such involvement of agents in online process. You can buy term insurance directly from the online website without any hassles.

2-Easy access (buy anywhere) – Purchasing an online term plan is more convenient than buying it offline. In fact, you can access it easily anywhere, anytime. All you need to do is to log on to the website and keep a timely track of the policy status from the comfort of your home.

3- Custom-made (add benefits, change policy term, etc.) –  Through online platform, you can avail custom-made plan in just a few clicks. From adding benefits to changing policy term, you can do anything as per your requirement.

4-Eco-friendly (paperless, 100% online process) – Online purchase of term insurance is a paperless and 100% online process. It decreases paper work and processing fees automatically. You don’t have to go through the hassles of carrying documents and submit them to the company’s office. Everything can be easily done online without any hassles.


How much Term Insurance does a mother/wife need?


The amount of term insurance that a mother/wife requires depends upon her financial needs. Calculate your premium using Aegon’s iTerm plus calculator. Here’re the few things you need to keep in mind while deciding how much term insurance cover you’ll require –


  • Current Annual Income – Your current annual income plays a major role in deciding the amount of term insurance you require. For example, if your annual income is more than 4 Lakhs, then it’s advisable to go for a term plan that offers a cover of 1 crore.


  • Financial Goals –  Financial goals such as children’s marriage, education, etc., also plays a very important role in deciding your coverage.


  • Age during the purchase of policy – Age at the time of buying a policy also plays a significant role in deciding the amount of term insurance. At different stages of life, we have different needs, thus age must be considered while buying a term insurance.


  • Financial liabilities – This is yet another important thing to consider while deciding the amount of coverage. Always make sure that the coverage is large enough to meet all your financial liabilities such as debt, outstanding loans, etc.


What is Ideal Policy Term?


Policy term is the time period specified in the policy. If a policyholder dies before that time and the policy is still active, then the insurance company will pay death benefits. The ideal policy term offered by mostly insurance companies is from 10 years to 75 years.


How and why premiums are lower for women?


It has been noticed that women live much longer than men. That’s why premiums for women are lower as compared to men. Simply put, if somebody lives for a longer period of time then premium paying duration for them will also be longer. Thus, by this way, insurance companies make a deduction in the premium expenses for women who purchase life insurance plan and make premium amount relatively cheaper for them. In addition to this, health also plays a major role in deciding the premium amount. Women lead a much healthy lifestyle than men. Some ailments such as heart attack are more common in men at the age of 40s and 50s as compared to women, which shows women are less prone to illnesses and death. So, the rates of premium are also less for the women.



Top FAQs & Answers related to life insurance for woman


  • Why is life insurance important for women?

In today’s world, men and women are doing equally well when it comes to money. Although, as compared to men, women are at higher risk of getting health problems as they manage both work and household. And that’s why it is important for women to buy a life insurance plan. It will not just protect them against financial liabilities but will also help in planning the important goals of their life.

  • Why a woman should invest in life insurance?

Either you’re single, married or a working woman, you must invest in a life insurance policy as it ensures your family has the income to survive even if something happens to you, be it accident, permanent disability or untimely death.

Disclaimer: This article is for general reference reading, please take an expert’s advice in case of doubt.

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