Before we understand the need for life insurance for women it is first important to be clear on what a life insurance policy is. A life insurance is a contract that the policyholder and the insurance company get into where in exchange for the premium that the policyholder pays the insurance company agrees to pay a sum assured, which is a lump sum amount when the policyholder dies. This is known as the death benefit and is given to the insured’s family after the death of the insured.
A person chooses to buy a life insurance policy based on what his goals are.
Why Should One Buy A Life Insurance Policy?
The basic reason why one should buy a life insurance policy is because of risks that are not known. This risk includes the risk of dying early in life as well as living for very long.
You need life insurance because:
- you want your family to have financial help after your death
- you want your children’s education and needs to be taken care of when you are not there
- to have a good savings plan so that you have a constant flow of money after your retirement
- to have an extra source of income in case of a serious illness or case you meet an accident
- to provide for various requirements and contingencies
Who All Need To Purchase A Life Insurance Policy?
The question now arises is whether everyone in the family needs to buy a life insurance policy. Anyone who needs to support the family and earns income should without doubt have a life insurance policy. However, housewives who may not be contributing to the family income should also buy life insurance for women. Even children can buy life insurance policies in case they see that their future income could be at risk.
Also read: Health Insurance Plans for Women in India
Why Should Women Buy Life Insurance?
Women too need to buy life insurance for women irrespective of whether they are earning and contributing to the family income or not. Whether you are a single, unemployed, employed, or married woman.
Important Reasons, Women Need Life Insurance
There are top 4 reasons why women must buy life insurance include:
- Most families today have working women and both the parents’ income equally contribute to the family income. This is why both lives must be secured. Both the parents’ incomes contribute to the finances of the family and thus they must be insured to meet any disability or death that could come uninvited in the future. For example, if you work as a nurse, you’ll need some nurse disability insurance. This is important so that the kids are assured of a quality lifestyle and education after the demise of any of the parents. Also if as a woman you are into your own business then you must buy life insurance for women so that you are assured that the business will keep going on even when you are not there.
- Single women do not understand the importance of buying life insurance for women because they think that they do not have liability since they do not have any dependents. However, what is important to understand is that you can use the life insurance of women to pay off any debts or any education loans that you may have taken which could become your family’s responsibility in case something has to happen to you. Also, life insurance for women can be used for income after retirement.
- Those women who stay at home think that since they do not contribute any money to the family thus buying life insurance for women, the best insurance policy for housewives, is a waste of money for them. However, did you ever realize that in your absence how your house would run? In case of your death, your spouse has to shoulder the responsibility of taking care of the kids and the house for which either a help needs to be hired or the spouse has to work for fewer hours. This could impact the income and increase the expenses and thus a life insurance for housewife Indian lump sum pay-out from housewife life insurance comes to great use.
- The life insurance for women also lets you save for your retirement. The women’s life insurance policies will let you enjoy your dream retirement and will let you achieve some of your goals. The life insurance from women gives you a good amount of money to enjoy your retirement days in the way you want to.
Also read: What Is A Retirement Plan And Why Having One Is Essential
All this makes it clear why women should consider buying life insurance for women so that they can benefit from this policy. You must buy the policy as soon as you can so that you can reap much better benefits and also the premium is lower when you buy the plan at a younger age.
Types Of Life Insurance Women’s Policies That A Lady Should Buy
When you go shopping for the best life insurance policy for a woman you will come across many life insurance women’s plans. It could get a little confusing to start with so you must understand the different kinds of plans. This will let you make an informed decision about which plan is the most suited for you.
- A term insurance plan is recommended for young women. Term insurance plans give coverage at a very reasonable cost. In the case of your demise, your nominees will get a good amount of money to continue with the lifestyle to repay any debts.
- You could also buy an insurance plan for your child in case you have one. This will let you save money for your child’s future needs. This plan will give continuous cash flow at some specific times and this will cater to the needs of your child
- A pension or a ULIP plan is a good investment for your retirement. The wealth accumulated over the years gives you a lump sum after you retire.
Conclusion
There is a lot of uncertainty today and surprises could creep up any time. Thus every person must buy a life insurance policy to protect himself and his family in the case of an unforeseen circumstance.
