Best Term Insurance For Women

As a woman, you have a multi-faceted life, whether you’re a breadwinner, a homemaker, a mother, a wife, a caretaker. You play so many different roles and make huge sacrifices and contributions to your family.

Your loss can create havoc in her family’s lives - both emotionally and financially. How do you create a safety net for them?

While you certainly can’t lower the mental distress your loved ones will go through because of your absence, you can safeguard their financial futures with the help of term insurance. This will ensure that they have a safety net to fall back on without worrying about their finances and going through any extra anguish - when you aren’t around.

But, one worrying statistic says that for every 10,000 women, only 139 purchase a life cover. For men, the number doubles. This might be because men are considered to be the primary earning members of their families and their loss may be more devastating in financial terms. But, it’s 2023 - and it’s time to change this narrative.

What you need to know is that anyone who earns or contributes to their family’s lifestyle should invest in term insurance to ensure the financial safety of their loved ones. No matter what their gender is! In this article, we’ll take you through the benefits of term insurance for women and the best plans available in the market - so you can make the right choice!

What is Term Insurance?

A term insurance plan is a type of life insurance. It is a pure risk protection plan that gives financial security to your loved ones. If you, unfortunately, pass away during the policy duration, they receive a fixed sum of money as a death benefit to settle their financial needs and goals.

How does Term Insurance Work?

Term insurance is the simplest form of life insurance.

• It will pay out a death benefit to your family if you pass away. They can use this money to secure their finances/lifestyle, pay off debts, fund long-term goals like higher education/weddings, etc.
• However, if you survive the policy term, you won’t get any benefits.

Why Do Women Need Term Insurance?

• It Creates a Financial Cushion for your Loved Ones

  Whether you’re a breadwinner or homemaker, term insurance makes perfect sense to create a financial cushion for your family. No matter what role you play, term insurance will be a steady helping hand for your loved ones. If you contribute to the family’s income, your loss will deplete them of financial stability. If you’re in charge of household responsibilities, your loss will increase their expenses because they will need to hire caretakers, cooks, tutors, drivers, etc. Your family members can use the term insurance payout for their future goals, daily expenses, maintaining their lifestyle, etc.



• It Helps your Family Members Pay Off Loans/Liabilities

  If you have taken any loans, say a business loan or a house loan, and you pass away before paying them off - the repayment liability will fall on your family’s shoulders. It might become very difficult for them to arrange the money for repaying the same, especially if they don’t earn.
  
  And, you might have even taken a joint loan with your husband so you shoulder some of the repayment liability. If anything unforeseen happens to you, your spouse will have to bear the entire burden of repaying the loan.
  
  Here’s where term insurance can play an important role. The [death benefit](https://lifeinsurance.adityabirlacapital.com/insurance-dictionary/d/death-benefit/) that your loved ones will receive if you pass away can be used to take care of any loans/debts that you pass on to them.

Example:

Nisha is a single mother with an 18-year-old daughter, Alia. Nisha has taken a home loan of Rs 30 Lakhs, which is to be paid within the next 15 years. She also plans to send Alia to Australia for her postgraduate studies, which will cost around Rs 50 Lakhs.

So, Nisha invests in a term insurance plan with a cover amount of Rs 1 crore and a policy duration of 15 years. She appoints Alia as the nominee. If something happens to Nisha during this time span, Alia will receive the cover amount of Rs 1 crore which she can use for her goals and paying off the home loan.



• It Provides you with Medical Assistance

  Women are prone to diseases like breast cancer, cervical cancer, maternal health complications, etc. You can expand the benefits of your term insurance plan to help you deal with the expenses associated with these illnesses, with the help of riders. Riders² are essentially add-ons that enhance your base coverage at an additional premium. A few riders available with term insurance include Critical Illness Rider, Accidental Disability Benefit Rider, etc.

Example:

Mohini buys term insurance with a cover amount of Rs 50 Lakhs and customises it with a Critical Illness Rider with a cover amount of Rs 10 Lakhs. She is unfortunately diagnosed with cervical cancer after a few months and needs immediate treatment. Cervical cancer is listed as a critical illness in her policy document and so, she will be paid the rider’s cover amount of Rs 10 Lakhs to deal with the treatment costs and lifestyle changes.



• It Gives you Tax Benefits¹

  Investing in a term insurance plan also gives you some amazing tax benefits¹ under the Income Tax Act of 1961 -
  
  Section 80C Premiums paid for the plan are eligible for tax deductions up to Rs 1.5 Lakhs. A
  
  Section 10(10D)³ The claim amount your nominee will receive if you pass away is exempted from taxation.

Best Term Insurance Plans for Women’s Day

At ABSLI, we have some of the best term insurance plans that you can purchase to ensure the financial well-being of your loved ones -

Conclusion

So, we have reached the end! Invest in the right term insurance plan at ABSLI right now to ensure the financial security and safety of your loved ones - no matter what life throws at you.