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Why should women go for a term insurance plan?


Women are leading across several industries in unprecedented ways. They are re-writing rules, shattering the glass ceiling, and finding solutions to world problems. They are strategic thinkers, community builders, innovators, caregivers and are taking charge of their well-being.

However, when it comes to financial fitness, many women tend to shy away from taking charge of their money and long-term investments. In the matters of personal finance, they tend to trust someone, which can often lead to misunderstandings and under-management.

But, it is important for women to take up financial management, control their finances, monitor spending habits and rectify any mistakes. They must save, invest and take up schemes that safeguard them and their loved ones from uncertainties of life.

So, how can they begin? Firstly, women should identify what goals they want to achieve. It can range from short (vacation, buying a car) to long-term (buying a house, investing in child’s education, retirement) goals. Secondly, they must save a portion of monthly income, and thirdly invest it in easy to understand schemes.

Besides saving and investing, women must get serious about buying a term insurance plan. It is a myth term insurance is meant only for men. Women should also buy an effective term insurance policy to secure their loved ones and add a layer of financial security around them.

Take the example of Shruti Sharma, 40, whose demise left her family in shambles. She was the sole breadwinner of the family of three- her retired parents and a younger sister. Besides emotional trauma, Sharma’s family faced financial distress and were forced to sell-off their house to support younger daughter’s education and meet daily expenses. In this case, an effective term insurance policy would have replaced the loss of income and helped the family sustain the standard of living.

A term insurance plan is equally important for women, especially who have dependents as an effective policy can build a financial foundation and minimise the risk of loss of income, in case of any eventuality.

It is the cheapest form of insurance through which women can secure their families from spiralling into a financial mess. But, despite the benefits, women’s participation in life insurance was lower than that of men at 36% in FY19, as per a report by Insurance Regulatory and Development Authority.

Thus, to encourage women to buy insurance, companies such as Kotak Life Insurance have been rolling out term plans with attractive features for women. The Kotak e-Term Plan offers high level of protection at a nominal cost for women with term life cover up to 75 years and premiums as low as Rs 15 per day.

It has flexible pay-out schemes. Also, apart from death benefits, the term plan also covers major illnesses. The term plan covers 37 major illnesses including cancer, brain tumour, and other ailments.

Moreover, they can also save taxes under Sections 80C and Section 10(10D) of the Income Tax Act, 1961.

Women make lasting change at their workplace, households, etc., and are great at multi-tasking, and it is pivotal to provide inclusive cultures and empower them.

This is a partnered post.


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