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Important Reasons Why Working Women Need Life Insurance

Inderpal Ahluwalia 18 December 2017

If you are a working woman without life insurance, then this article is for you. Read on to know more!

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In today’s day and age, women are empowered socially and are working shoulder to shoulder with men in almost every profession. Their contribution to household income has become very important to maintain the lifestyle and build better future for their children. Many women today have actually become the main breadwinner or co-breadwinners but when it comes to insurance, they unfortunately underestimate their own value and don’t take financial protection offered by life insurance against many risks in life.

Why Women Need Life Insurance?

Below are some of the important reasons that will help you understand the important reasons why working women or a home maker needs a life insurance policy.

Financial protection

When you are responsible enough and share the financial responsibility with your husband, you should not compromise on protecting your financial responsibility. Life insurance will give you the mental peace that your family will be protected in future in case something happens to you.

Life insurance can help your savings grow

Small savings like putting money in a jar or investing in a local chit fund were the traditional methods which were used by a woman in the past to save money. However, now market-linked life insurance products like Unit Linked Insurance Plans (ULIP plans) can give you better returns and at the same time offer life insurance protection.

Cover for critical illness

We all know medical expenses are rising day by day and if one contracts a critical illness, the experience can be traumatic and can uproot a family’s financial position in paying the hefty medical bills. A term plan can provide a combination of life risk cover along with critical illness protection through a rider or inbuilt feature in the base plan. In case you are diagnosed with a critical illness, the respective sum assured is paid. And If the critical illness results in death, then also family gets the balance amount as per the policy agreement which can help the husband deal with future expenses of dependent children.

Cost Effective

According to a study, life expectancy of woman is more than a man. Insuring females is less risky for insurance companies. Due to this females are offered preferential rates over males when it comes to life insurance. This makes life insurance more cost effective and an attractive buy, offering lots of benefits, life coverage and financial savings.

Savings for retirement

If your husband has invested in a retirement plan that does not make you invincible to financial worries in your old age. With the ever growing inflation rate, depending on one person’s retirement might become challenging to maintain the current lifestyle. You can use life insurance products for a systematic and organised financial planning for retirement.

Leaving a legacy for children to remember

Every mother wants best for their children. Managing a house with children and doing professional job is not an easy task. Due to this hard work, children are able to get access to best facilities. Every mother would want to ensure that no obstacle comes in the way of her children’s wishes of getting good education, a dream wedding etc. Life insurance helps to get the financial protection that will ensure children’s dreams are fulfilled and milestones are successfully met even in the absence of their dear mother.

Types of life insurance plans women can buy

Term Life Insurance Plan

Term life insurance will keep your dependents secured and term plans are available at a concessional rate for women. It is better to buy a term plan early as the younger you are, the lower would be the premium and you would get more years of coverage.

Endowment life insurance plan

Endowment life insurance plan can help you with savings. You can invest in an endowment plan to meet your short term or long term financial goal. It can also help you save for important milestones in your life like your children’s education and marriage.

Critical illness coverage plan

Working woman undergo a lot of stress managing work and household duties. This can take a toll on their health which might result in a critical illness. To ensure you get a good treatment and keep your hard-earned savings secured a critical illness coverage plan will be a useful addition to your financial investment planning.

As you can see, life insurance is very critical in the life of every working woman as they play an important role in managing household expense. What’s more it also provides good tax benefits but it should not be the sole reason to buy a life insurance. Choose the right life insurance plan which will give you adequate coverage as per your requirement giving you peace of mind in an otherwise stressful work life!

Recommended Read: Why Should Women Buy Term Insurance without Fail?