Importance and Need of Term Insurance for Working Women

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  | Published: 27 January 2021 | Last Updated On: 08 February 2021

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Today’s women are independent and empowered. They are walking toe to toe with their male counterparts in carving a space for themselves in this world. They no longer need anyone to take care of them, instead, they are now capable enough to provide for not only themselves but also their families, contributing at the same time in making the future of their loved ones brighter and more secure. So why should women step back when it comes to financial planning? Why should this be exclusively the men’s domain?

Despite earning their livelihood and supporting the family, when it comes to the matters of money, women tend to take the back seat like they always have traditionally. It is time women understand that just like they are sharing the expenses of the house, they also have to take the opportunity to share the responsibility of planning their future financially. Doing so will make sure that their lives are protected from the uncertainties that surround us on all sides. More importantly, it will ensure that their loved ones are shielded from the struggles of life after they are gone.

The first step towards achieving this goal is buying a term insurance plan. Life insurance is an effective financial tool for not only making investments but also for savings. If you need more reasons to convince you as to why opting for term insurance that is separate from your husband is a smart choice, then we have tried to list down the reasons why it will prove to be the best decision of your life but first,

What is a term insurance plan?

Popularly known as a pure life insurance, a term plan is one type of a life insurance policy. It guarantees a death benefit to the insurer if he or she dies while the plan is still active. If, however the plan expires, the policyholder has the option to either renew it for an extended term or they can convert it into a permanent life insurance cover. The third obvious alternative is to let your term life insurance terminate but this will leave you uncovered.

Let us now look at the reasons why getting a term life insurance can be beneficial for working women:

A safety net for the family: Women tend to live their lives for others more than they live for themselves. Henceforth this is the first reason why you should think about buying a term insurance policy. This plan comes in handy as it offers financial security to your near and dear ones when you can no longer do that yourself. As more and more women are joining the employment sector, the necessity of having a life insurance plan cannot be overlooked. Even though women are said to live longer than men, no one knows what the future beholds, and thus it is better to book a term plan. These plans are cost-effective as opposed to any other form of life insurance. These also have the added benefit of tax exclusion that makes it even more appealing.

Fulfilling long-term objectives: Studies indicate that women tend to invest lesser than men do. Why should this discrepancy exist when women are earning at par with the men of the society? Women pursuing their careers must certainly invest in financial options so as not to be left behind in the race of life. Additionally, investing allows you to get gains that can be utilized in achieving your long- term financial objectives. Term insurance policy is also the right choice to make as it will allow your family to not have to give up on their dreams if you are no longer with them to support them. This might be a conventional approach in a modern world but sometimes old is gold!

Cost effective: There is an old saying that women live longer than men. This proves to be useful as this promotes insurance companies to approve their applications since they are seemingly less risky. This also helps women get preferable rates over men in getting term insurance policies, making them a lot more cost-effective. This significantly increases the appeal of a term plan for a woman.

Covers critical illness: The modern man is ravaged by diseases. With the contaminated food, water and air around us, diseases seem to be inescapable. On top of that, our unhealthy eating habits, lack of exercise and sedentary lifestyle are contributing to making us prone to illness. Women suffer from a compromised immune system due to childbirth, hormonal imbalances etc, making them even more prone to get sick. Critical diseases like breast cancer, ovarian cancer, cervical cancer among others attack the females. A term insurance plan can include a critical illness cover so that in case one is diagnosed with one of these life-threatening diseases, the hospital bills do not add to your worries. Medical costs are rising day by day and thus getting life insurance today will give you peace of mind regarding hospitalization costs running your savings dry.

Tax benefits offered: The premiums you will pay for your term insurance policy are exempted from being taxed. As compared to any other life insurance policy, term plan offers these benefits making them a lot less cheap than any of their counterparts.

Set off debts: The death benefit received by your beneficiary after your unfortunate demise can help them take care of any outstanding debts you might have. The loss of a loved one can never be healed but at least by booking a term insurance cover you can make sure that the loss is not heightened even more. You can help them financially even when you are no longer there to do it physically.

Financing your child’s dreams: Your sudden demise should not mark the end of your child’s future and their dreams. Education costs are rising every day and will certainly cost a fortune in the future. In the event of your death, the death benefit received will be able to fund your kid’s higher education as well as give wings to their dreams.

Supporting the family’s lifestyle: Taking care of your family is the ultimate priority. What if you could do that even after your death? The death benefit from a term insurance plan ensures that your family does not have to compromise on the way they live life. They can maintain the standard of life that they were used to in your presence, even if you aren’t around anymore. Their emotional loss does not necessarily have to be combined with the loss of lifestyle.

Peace of mind: Last but certainly not the least is the peace of mind guaranteed if you choose a term insurance policy timely. Living life under the constant fear of what misfortune could befall you next is no way to live life. Buying a term plan ensures that you can throw all your worries to the wind and focus on the present instead of constantly pondering on the question- “what will happen if…?” Enjoy the present today, with your family, with your colleagues, rising professionally and personally.

Things to keep in mind when buying Term Insurance:

  • Make sure to get an adequate term cover as it is always better to be over insured than under insured
  • Make sure that all of the information provided by you is accurate as the discovery of false or inaccurate information can lead the insurance provider to reject the claim for death benefit
  • Make sure to add a nominee name that could be your partner, parents, child or any other loved one
  • Add the different rider to your term plan as required by you. You could add a critical illness rider, waiver of premium rider or accidental death benefit among many more
  • Do a yearly review of your policy and increase the cover as per your requirements

The Bottom Line

In the world that we live in toady demands that every man, woman and child is insured. But this especially applies to women who should opt for a term insurance plan that offers coverage at every stage of their lives, giving them financial security that is extremely important to women whether they are a working professional or a homemaker. It grants women support to face the world and also take care of their loved ones when they are no more around to do it themselves.