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5 Term Insurance Benefits for Single Women

Nov 27, 2019 | 4 months ago | Read Time: 2 minutes | By iKnowledge Team
5 Term Insurance Benefits for Single Women

Introduction

Term insurance provides financial protection to your loved ones in the event of the policyholder’s unfortunate demise. They function as a pure insurance protection product: you pay a fixed premium for a certain amount assigned as a sum assured and in return there’s the promise of protection. In case the policyholder dies during the term of the policy, the beneficiary gets this amount called the death benefits. 

If you are a proactive financial planner, term insurance is an integral part of this plan. Your financial portfolio should ideally serve various needs like savings, investment, protection, etc. 

Why the term plan is important for single women

Women are acute planners and financial planning is no exception. Women understand the importance of saving and start saving early in life. It comes as no surprise then that they are also proactive explorers of financial instruments – and term insurance should ideally feature here. 

Benefits of a term plan for single women

  • Debt payments

Education costs are skyrocketing. Young people and fresh graduates are coming out with degrees and debts. Single women may have student loans too. The other most obvious debt is a credit card loan. Even with a comfortable salary, it is important to plan and set aside funds for the repayment of these debts. Having said that, it is also important to account for the uncertainties of life. If she were to pass away with debt still hanging over her, the family members of dependents might have to bear the burden of the loans. The proceeds from term insurance could help them cover these costs. 

  • Funding professional ambitions

Whether single women start their own venture or choose to freelance in their profession, there are a lot of capital investments done initially. A business loan or professional loan is not uncommon. A term insurance plan can, therefore, serve as an emergency cushion to pay these installments and keep the business running in the hands of the partners in case of the untimely death of the woman. 

  • Future needs

Women now want to live their lives on their own terms. Even if they choose to get married later in life, the expenses of the family may need more financial attention than life as an unmarried person. Term insurance at a younger age implies that you pay low premiums and get reasonable cover. 

  • Lifestyle diseases

Our lifestyles are getting hectic and our lives are marred by pollution, poor dietary habits, predisposition to illnesses. Medical inflation is also at an all-time high. The epidemic of lifestyle diseases also makes for a compelling reason to draw a term insurance plan. 

  • Save Taxes

One of the most prominent benefits of term insurance is the savings it allows on income tax. The premium paid for the plan is deductible up to Rs 1.5 lakh from the taxable income under Section 80C of the Income Tax Act 1961.

Conclusion

Term insurance plans are very popular due to their affordability and personality as a pure protection instrument. It is imperative to have term insurance in the bouquet of financial instruments. The sooner one gets term insurance, the better.


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