The time when men used to be the only member with income of a family was already gone. As times have progressed, women have slowly emerged at the forefront of their home, not only as managers, but also as their breadwinners. In many homes, both husband and wife are gaining members. In other households, women sometimes earn more than their partners. In many cases, they are the only member with income from their family and manage their home completely on their own merits.
However, women tend not to take their finances so seriously and skip life insurance policies in their name. Men are often the first to obtain life insurance in their own name, while women are left behind, insecure and with little confidence in the value that a life insurance policy will have for them. This article will illustrate the six reasons why the best life insurance plan is comprehensive for a working woman:
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1. Monetary security.
In case you are the sole breadwinner of your family, you must ensure that your family has a recovery option in the unlikely event of your untimely death. If it does not provide them with sufficient security, their premature death will adversely affect them, both emotionally and financially. Even if both you and your partner are working, it is advisable to have a life insurance policy to provide the family with a safety cushion, in case of your death.
2. Adding to your savings
Unlike our grandmothers, women no longer save their money in glass jars or make the mistake of putting their money saved in money funds. A hardworking woman has many options to invest her money and one of those outputs could be an insurance product that is linked to the market. This will not only provide better returns but will also have the added security of a life insurance plan.
3. A cushion in case of a fatal disease.
An adequate life insurance policy that also takes into account medical expenses in the event of a costly critical illness will reduce the financial pressure on the family by a considerable amount. In case you are diagnosed with an illness that has serious repercussions, at least you will be sure that you will be paid a lump sum. In the unlikely event that it could lead to your death, you will be assured that this plan will take care of your family.
4. Costs of rationalization
According to various studies, women have a much longer life expectancy than men. So, when it comes to granting life insurance policies, women tend to get better rates compared to men. Therefore, for women, it is a preferable option that comes with a lot of security and financial gains, especially in the long term.
5. Retirement savings
Often, relying on your partner's insurance policy may not guarantee enough financial security for both when you reach retirement age. You may find yourself spending more than you have, or having some unforeseen expenses that will take a bite out of your funds. In such a case, a good life insurance policy gives you an organized plan to control your finances.
6. Security for your children.
The main concern that most mothers have is with respect to the financial security of their children. You will always want to make sure that your children do not lack the funds to take care of themselves and their education. You want them to have a good education and a good life, even if you are no longer there to guide them physically. An adequate life insurance policy will ensure the safety and well-being of your children even when they are gone.
The types of life insurance policies that you might consider include:
1. A term life insurance plan.
This type of plan will ensure that those who depend on you are financially secure, even after your death. The premium rates for women are substantially lower in these plans and you must buy this policy at an early age.
2. An endowment of the life insurance plan.
This type of plan is highly profitable if your long-term goal is to save. It helps you plan your financial future effectively. We recommend that you save money for large events such as your children's college education or your wedding.
3. A plan for the disease.
Medical complications can occur at any stage of your life. Life insurance plans that cover fatal illnesses will ensure that you have enough money to access good treatment and that your family is not paralyzed by expensive hospital expenses and medical care.
Here are some life insurance policies that you can consider for yourself:
• HDFC Life Smart Women ULIP
An advantage of this plan is that you can buy it online. There are three variations of the plan: The Classic, The Premier, The Elite. It is especially beneficial for women who are going to motherhood since it is malleable with risks related to pregnancy for both the child and the mother. It also offers an assured amount of money as well.
• Advantage plan of SBI Life Smart Women
This plan provides a working woman with triple coverage: includes life coverage, long-term savings and includes a clause for fatal diseases. You can choose between gold or the Platinum Plan. The plan comes with the additional advantage of a premium exemption in case you are diagnosed with a fatal disease.
You also have the opportunity to choose the amount you wish to receive in the event of your death or if you are diagnosed with an illness. It will always be a multiple of the base amount you should receive.
• LIC Plan Jeevan Bharathi-I
The unique feature of this plan is that it is designed especially for women. Certain benefits of this plan allow for an annuity. There are also several additional benefits for this plan. Every five years in the course of this plan, you will receive 20% of the insured sum as part of the survival benefit.
• TATA AIG Wellsurance Women Plan
Under this plan, you will be paid a benefit amount, if you are diagnosed 1 of the 11 diseases that the plan will cover. It also comes with the additional benefit of cash from the hospital.
Therefore, this article has tried to emphasize the importance of a life insurance plan for a working woman. Most of the policies are directed at men and their needs and requirements, based on the idea of the advanced age that men are the main providers of the family. However, times have changed, social norms have evolved and women have emerged in the forefront. It is no longer necessary for women to move away from work. Now they have the responsibility on their shoulders to secure their own financial future and that of their families. Therefore, these life insurance plans are only preliminary policies before you adjust to the one that suits your needs.
1. Start young. The younger your age is when a policy begins, the greater the amount that you will ultimately receive upon maturity.
2. Choose the appropriate policy taking into account the requirements of your family. If you have a history of breast cancer in your family, it is likely to be hereditary. Therefore, be sure to opt for a health plan that covers medical costs if you also have the disease.
3. In case you want to make sure that your children have the best education that money can buy, choose a plan that allows you to access your money in the required period so that your children do not suffer.
4. Consider your salary and choose a premium that you can pay each month. You still need to manage your daily expenses. It is okay to commit a little for the future, but not so much that it is detrimental to your standard of living in the current times.
5. Always compare and contrast the different policies that are offered. It is very similar to buying a new pair of shoes. Do not buy the first policy you find. Compare different policies before choosing the correct setting. Check the interest rates and the lump sum and all the fine print on the form before you sign up, as it is a lifetime commitment.