Things Working Women Should Consider While Buying Term Insurance

There are many reasons for working women to buy term insurance cover. In today’s scenario, where double income is the new household norm, in short, it is even more common to see women contributing to the total household income, to buy term insurance should come upon naturally. In addition, if you are a single woman, who is financially independent and will soon get married, or if you are a single mother shouldering financial responsibilities to manage your child’s education, for example, then you may necessarily need to buy term insurance cover, in the correct perspective.

Why you need term insurance

Before you even start searching for the best online term insurance plan, it is important to be 100% convinced- why you need it.

To know more, it is important to note the type of term insurance cover including its multiple features and the benefits. A term insurance plan, in addition to rendering a lumpsum amount in exchange of the annual premium paid by you, says for a tenure of 10, 15 or 20 years, will give you more benefits.

That benefit is the mental comfort and income security for your loved ones.

Therefore, you need to ensure that you go with sufficient coverage, considering your monthly income, your living expenses and even certain economic factors like the depleting value of money or the inflation, to work out the best term insurance coverage for your near and dear ones.

What is the best time to buy term insurance plan

Term insurance cover is guaranteed personal income benefit for your family, only when you are not there to support them.

The life risks are aplenty today. A good term insurance plan is important as it offers personal life risk benefits against:

  • Accidental death
  • Accidental disability
  • Cancer & heart attack
  • Serious illness
  • Add-on covers for women-specific ailments like breast cancer, cervical cancer, maternity risks and much more

Any woman has an option to buy term insurance cover from 18-65 years of age.

How much to invest

There are multiple options, through a term insurance plan, available to a woman to financially secure her family’s future. Depending on your total income and directly linking it to other personal factors such as your future financial responsibilities and your present lifestyle, one should be able to estimate the duration of the term insurance cover (in correspondence with the total sum assured).

Other factors such as the family history are also important. If a woman has a breast cancer family history, then the lifetime risk is even higher, so depending upon this factor one should invest in a term insurance plan at an early age. A 10-year insurance cover may suffice for some, and for others, the insurance term can be higher.

The biggest advantage of a term insurance plan is that the premium pay-out option, in lieu of increasing the total sum insured as you age, is flexible. In other words, if you begin with a short-term plan, and need to increase the total sum insured soon or wish to continue with your policy for a longer duration, then, you have an option to do so without hassle.

The biggest plus of a term insurance plan as compared to any other type of life insurance companies is that the premium of a term cover is very affordable, and the returns invaluable.

The Tax Benefit

You are also entitled to a tax exemption of Rs 1.5 lakh under Section 80C of the IT Tax Act 1961. The claim amount is also tax-free under Section 10 (10D) of the Income Tax Act.

In the nutshell, the direct and the subtle benefits of a term insurance cover is worthy of your time and effort to earn and protect your family’s financial security intent in a pragmatic, wise and prudent manner. Besides, the premium amount is affordable, the returns are huge, flexible and in tune with the present and future economic scenario.