There has been a lot of emphasis in the past on necessity of life insurance products for the head of the family, which usually are males. In today’s day and age, the scenario has changed and women are working shoulder to shoulder with males in every field. They contribute equally or even more in the household income to give their loved ones and family a better lifestyle and bright future. If their income suddenly ceases due to an eventuality, then it will have dire financial consequences to the rest of the family. It has become absolutely necessary for working woman to have a good life insurance policy.
Below are some of the crucial reasons why working women should enrol in a good life insurance policy-
One of the main reasons for the working woman to get a life insurance policy is due to the importance of their income in the monthly budget. The backing of a life insurance policy will strengthen the financial security of the family and would mitigate the risks in times of adversity. It will also help in giving the vital peace of mind to you, knowing that your children’s future is financially taken care of, if something happens to you.
Low premium rates
Females are less risky for claims for the insurance industry, as it has been derived from a life expectancy study that they live longer than males. Due to this, insurance companies offer lower premium rates on some life insurance plans that what they would offer to cover male lives. This gives one more reason for the working woman to buy life insurance and take benefit of the high coverage at affordable premium rates.
Life insurance can assist in growing your wealth
We all have seen our mothers keeping cash in a jar or investing in local chit fund for savings. These are the traditional and less effective ways for savings. These methods did not offer much returns or offered the opportunity for growth in wealth. Today, life insurance products like ULIP (Unit Linked Insurance Plans) offer opportunities to the investor to participate in market-related growth. Hence, ULIP plans have been known to offer better returns than traditional endowment plans and offer vital life protection in the same plan.
Financial protection against critical illness
The medical inflation is growing in double digits and even for a few days of hospitalisation, the bill can run into lakhs of rupees. Such a situation can create a financial disaster in the family and can sweep all the hard-earned savings in one go. A good life insurance policy can provide you relief from such instances by covering the person from critical illness. Today, there are life insurance plans that especially offer coverage for woman related illness, thus increasing the worth and value of the life insurance product for woman customers. If the critical illness results in loss of life, then too the life insurance policy will pay out the death benefit that will help the spouse to ensure the children’s future is safe and the family is able to cope up financially in the emotionally challenging times.
Saving for retirement
Life insurance policies offer various financial solutions to a person. One of the solutions it offers is saving for retirement. In the autumn of life, retirement savings of one spouse/husband may not be enough. Considering the inflation and growing daily needs, it is difficult to put a saving amount figure for retirement. It is highly recommended that a working woman should effectively plan their retirement, so that they can utilise their savings to live a good retirement life. Life insurance policies can help you organise and systematically plan for the retirement.
Be a role model for the children to remember
Mothers have a huge role to play in their children’s life. Mothers are already a hero for every child as they effectively manage home and professional life. Due to their income, children are able to get a better life which may not have been possible with only father’s income. Every mother endeavours to give the best of the best to their children and ensures no financial obstacle comes in the way of achieving their child’s dreams. Life insurance products will help the mother to ensure that there are no financial barriers in providing access to best education, dream marriage etc. for her children. Life insurance will also ensure that even if there is an adversity, the key milestones of her children are met even in her absence.
Types of life insurance plans women can buy today
Term Life Insurance Plan
Term life insurance will keep your dependents secured and term plans are available at a concession rate for a woman. It is better to buy a term plan early as the younger you are, the more beneficial it is for you with regards to lower premium and more number of years of coverage.
Endowment life insurance plan
Endowment life insurance plan will help accumulate savings for key events in life. Investment in endowment plan can be done to finance short term or long term financial goals. The maturity amount can be used for higher education or financing your children’s dream wedding.
Critical illness coverage plan
As discussed above, managing home and job is not an easy task at all. It takes a toll on the health of the woman which might result in a critical illness or loss of life. Critical illness coverage plan ensures that their expensive treatment expenses are covered and the insured gets access to best of facilities to recover and stand back on their feet. All this also ensures that there is no financial pressure or liability incurred on other family members and the savings of the family are safe.
As you can see, life insurance is very crucial in the life of every working woman as they play an important role in contributing to household expense and lifestyle. What’s more? It also provides good tax benefits, but it should not be the sole reason to buy. Choose the right life insurance plan which will give you adequate coverage as per your requirement, giving you peace of mind in otherwise stressful work life. Insurance aggregator website coverfox.com helps you compare top life insurance plans for the working woman which makes selecting the ideal protection plan easy and convenient.