Why Women Need to Buy Adequate Term Insurance Cover

 Why Women Need to Buy Adequate Term Insurance Cover

Traditionally, most Indian women were housewives; therefore, a majority of them did not find it necessary to invest in life insurance plans. Now the scenario is changing, as they match every possible step with men and climb the ladder of success professionally. 

Initially, women gave priority to health insurance plans over life insurance policies. However, now with a hectic corporate life and improper lifestyle habits, it is essential that they understand the necessity of having a life insurance plan. 

Today, many women are playing a vital role as homemakers and are taking care of the household expenses and the welfare of their family and children. If you are considering securing your life and providing financial assurance to your dependents, it is advisable to invest in a term life insurance plan. If you are eager to know what is term insurance, read ahead.

Term insurance is a pure and straightforward protection plan that offers a high sum assured at a reasonable premium. The sum assured and the premium are the two most essential aspects that you need to consider while procuring a term insurance policy. Moreover, if you buy term insurance online, you pay a much lower premium when compared to the offline method.

What should be your sum assured?

One of the most frequently asked questions by women is regarding the ideal sum assured. If you are also curious to know the same, we have explained this here in detail.

  • For housewives

 Here, you will need to consider the household expenditure. For example, suppose the household cost is approximately INR 30,000 a month, you have to opt for a sum assured that can generate a monthly equivalent amount for your dependents. In that case, you will need a sum assured of approximately INR 52 lakh.  

  •  For breadwinners

 If you are the sole breadwinner of the family, it is recommended to have a sum assured that can replace your income. If you are considering the thumb rule, the sum assured should be at least ten times your yearly income. For example, if you are earning around INR 12 lakh annually, your sum assured should be a minimum of INR 1.2 crore.

How much term insurance is sufficient for women?

As a woman, you look after your family’s emotional needs; similarly, you should make the right financial decisions and secure your family. Just buying a term insurance policy is not adequate. You should be prepared for unforeseen situations, medical emergencies, and other situations as well. Look at the riders that offer medical relief and protection from critical illnesses and accidents, among other term insurance benefits. It is best to safeguard yourself and your family against financial instability.

For instance, you can consider purchasing a term life policy that offers a personal accident rider if you drive. It will provide immense support and security to the policyholder and the family members and act as a safety net against an untimely death or physical injury. If you read carefully, you will realize that the term insurance benefits in such a plan include coverage for temporary and permanent damages caused by accidents.

Life is uncertain, and anyone can critically fall ill anytime. So, you should be ready for such medical situations. Term plans offer a shield against several serious illnesses and diseases like cancer, and heart failure, among others. When you buy term insurance online, check if the policy offers a critical illness rider, which can make it a valuable investment. 

As you look after your family’s needs and ensure everyone is happy, you must make that effort to protect them financially.

As you are a pivotal family member, it is suggested that you invest in a term plan immediately. Such a policy is a significant financial investment that goes a long way in providing economic security to your loved ones in case of your untimely absence.