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