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Why Is It Smart for Women to Invest in Term Insurance?

By PolicyBazaar
  | Published: 30 October 2020 | Last Updated On: 08 February 2021

Buy a term plan and secure your family

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AED 100,000 cover starting at just AED 7/month

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A woman in today’s world is no longer restricted to the four walls within the house. Women are stepping out into the world with their head held high, standing toe to toe with their male counterparts. They are taking up the most important positions in the biggest companies of the world showing one and all that their super powers lie beyond managing the house.  

Earner of her own bread as well as her family, women are making themselves independent in a competitive world. As a result, opting for term insurance has become an absolute necessity for all women. It is the first step towards gaining financial security not only for themselves but also for those who are dependent upon them. The market is full of women-centric term insurance plans that take care of the many different issues that women alone face like maternity benefits and diseases related to women.  

However, it is not only the financially independent women who need to secure themselves financially. Stay-at-home moms must also invest in term insurance. The unpredictability of life can often leave you helpless, hence whether you are a working professional or you choose your family over your career, you need to secure yourself financially.  

What is Term Insurance?

Term Insurance is a kind of life insurance policy that provides cover to the insurer for a specified period of time referred to as a “term.” In case of the untimely death of the policy holder during the active period of the policy, a death benefit will be remunerated to the beneficiary chosen by the policy holder at the time of booking the policy.  

Compared to a whole life insurance, a term insurance is less expensive. It also does not have a cash value unlike other permanent life insurance policies which means that it has no investment or savings component associated with it but it guarantees a death benefit.  

A term insurance can empower women in multiple ways. Here are some of the important reasons why investing in an insurance plan for times when you need to be rescued from any turbulence in life:  

  • Cost-effective-: A term insurance plan is cost effective as its premiums a lower than the many other life insurance products available in the market. At the same time, as a woman one can also avail tax benefits on such an insurance scheme. Hence, it does not over-burden you with hefty instalments.  
  • Provide a shield to the family-: A woman keeps the entire household together and even though no one can replace her, having a term insurance plan can certainly offer some support to your family once you are gone. Small investments over a period of time can offer financially security to the family in the future. Having insurance will make sure that your child’s dreams turn into a reality as well as safeguard your loved ones at times of emergencies. 
  • Help with hospital bills-: No matter how much we run, we cannot escape death and illness. Therefore, it is smart to invest in a term insurance plan so that when you are diagnosed with a critical illness, you can opt for the best treatments without worrying over the expenses. Most of these insurance plans also cover women-centric diseases like cervical cancer and breast cancer etc.  
  • Plan for the second-innings-: The little instalments you pay will ultimately turn into a steady flow of income once you retire. Term insurance offers a lump sum amount to the policy holder on surviving the tenure of the policy. It will come in handy not only when you need money for critical illness but also when you want to go on that exciting adventure in the years of your life. 

What is the most appropriate Term Insurance plan for women?

The insurance industry offers a wide range of products to entice you. Choosing the perfect term plan for yourself can be a confusing task. Other than plans that offer pure protection, there are plans that have built-in benefits. These plans provide a payout in case of a critical illness diagnosis like cancer, heart attack and so on. Once the illness benefit is paid, the insurance cover carries on. So carefully compare the different options available to you before you decide on the one that best suits you. 

What age is most appropriate to get a term life insurance plan?

There is no right time to get an insurance plan. The time is always right! As soon as you have dependents or liabilities, you should start exploring your insurance options. In fact, you can start even if you plan to have a family in the future. Get a plan that fits your dreams now! Remember, the more you age the more premium you will have to pay for the same cover. So, hurry! 

Do you need Term Insurance even though your employer already provides insurance?

Evaluate whether the life cover provided by your employer is enough to meet your needs or not. If it does not suffice, you might want to consider buying a term insurance policy to supplement your income during unfortunate circumstances. It is always better to opt for a personal life insurance policy apart from the one offered by your employer as it will ensure that you are covered even when you decide to change jobs.  

What if your spouse already has an insurance policy?

What is better than one? Two! Its good if your spouse has secured the future of the family financially but it is always better to have a life insurance policy for yourself as it will help replace your current income making it easier for you to afford your lifestyle habits.  

Statistics show that the percentage of women who invest is far lower than men. When women can contribute to the financial requirements of their family equally then why step back from being an equal of your male counterparts when it comes to investing and securing financial stability for you and your family? All women should make term insurance plan a priority. Choose a plan that particularly takes care of the requirements of women and leave your worries behind as you take on the world head-on.