Why Is Term Insurance Important for Women?

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As a woman, either a working professional or a homemaker, you must have considered getting a term plan, weighing the pros and cons. Numerous questions like ‘My husband has it, so do I need one, too?’ might strike you as well. So, before you come to a decision, let’s look at why you, as a woman, should have a term insurance plan as well.

What Is Term Insurance?

A term plan is an insurance policy that provides pure life cover to the insured person. The policyholder needs to pay premiums for a set amount of time to keep the policy active. In case the policyholder was to pass away, the sum assured would be given to the chosen beneficiary to aid in managing their finances. You can use an online term insurance calculator to decide the tenure of the plan, premium price, and sum assured for your policy amongst others.

Importance of Term Plan for Women

●      Protection in the Event of Death

As a woman, your contribution to your family is vast even as a homemaker. Thus, the sum assured will aid your spouse in managing the finances and taking care of the family and children.

●      Extra Coverage

You can purchase riders and get increased coverage in conditions like the diagnosis of a major illness, accidental death or permanent disability. To protect you from such unpredictable situations, riders give you extra coverage and safeguards your family.

●      Tax Benefits

You can claim income tax deductions for the premiums paid towards a term plan under Section 80C to get tax benefits. Your beneficiary can also claim the death benefit under Section 10(10D) of the Income Tax Act, 1961 and get it as tax-free.

Benefits of Term Plan for Women

Here are some essential benefits offered to women purchasing term insurance:

  • Special premium quotes are offered to women while buying term insurance
  • Maximum cover can be availed with rider benefits like critical illness, accidental death, and many others can be added to the term plan
  • Affordable premium prices are granted to women with a healthy lifestyle

Now that you know the importance of a term plan for women, you should go for a reputed insurer who offers affordable premium rates after comparing premium quotes from various insurance companies. It is always suggested to get premium prices, and term plan offers from several reliable insurance companies so that you can choose the most beneficial one.