Top 5 Reasons Why Women Need Life Insurance

Life insurance is a product that is typically sold to the primary earning members or the sole breadwinners in a family. This is because the remaining members of the family unit depend on the earning member or members for their financial needs. So, if anything untoward were to happen to these breadwinners, the surviving members of the family may be financially distressed.

A life insurance plan can help the family get through these tough times without too much of a financial burden. The sum assured under the plan will be paid out to the nominee by the insurer, and this benefit can help take care of the regular needs as well as the life goals of the family.

Decades ago, the earning members in a family were primarily men. But today, the scenario has changed significantly. In many households, women are also prime earning members of the family. Then, there are many women, like single mothers, who may be the sole breadwinners in their households.

So, as more women continue to enter the workforce, the importance of life insurance for women has also increased. Let us take a closer look at why a life cover is an essential part of financial planning for women in India.

Women today contribute to their households in many ways. Some, like working women, add to the family's income. Others, who may be homemakers, take care of the children and keep the wheels turning at home. The contributions of all these women are undoubtedly significant. In addition to the emotional loss that comes with losing a family member, the loss of the women in a household can also lead to additional financial burden.

For instance, in case a working woman passes away, her family will face the stress that comes with the loss of income. And in case of a homemaker's demise, her family may have to resort to external assistance to take care of the jobs the deceased woman handled on a daily basis, like cooking, home maintenance and more. So, in either case, the surviving members of the family will also be financially affected.

Needless to say, a life insurance plan can help soften the blow significantly. Here are some of the top reasons that explain why women need to include life insurance as an essential part of their financial planning.

This should give you a better idea of why life insurance is an important financial planning tool for women from all walks of life. Whether you are a single mother, a working woman or a single woman with any family dependents, it is always a good idea to get a life cover when you are young and healthy.

Along with other key necessities like an emergency fund and a health insurance plan, a life insurance policy should be one of the first things you should include in your portfolio. This way, you can enjoy all the benefits outlined above right from a young age. And you can protect your loved ones right from the word go.

As you grow older, if the number of dependents increase, or if your family's financial needs grow, you can increase your life insurance cover accordingly. For instance, you can start by getting a term insurance plan and later expand your coverage with a child plan. This is an essential part of financial planning for women.