Today in many households, women contribute a major share in the family income. In the absence of their income the household will suffer a major financial crisis. So, a term insurance plan is highly recommended for a working woman.
Let’s understand what is a term insurance plan?
Term insurance is the purest and the most basic form of an insurance product. Term plans are designed to provide financial protection to the dependent members of the policyholder in the event of an eventuality. If the policy holder who is the sole bread winner or is the major income source in the family dies suddenly then the financial burden will come on its family members. The situation can lead to a worse financial crisis for the family who might struggle to float in the absence of the income of the policy holder. This is where a term plan comes in picture.
A term plan promises a big sum assured for a nominal premium payment. As it is a pure death risk plan the nominee gets the sum assured only on the death of the policy holder. The term plan is available for a specific time period in which if the policy holder dies the nominee will get the death benefit. There is no benefit paid upon maturity as it is a pure death risk plan. A term plan helps to pay off any debts or acts as a financial shield to protect future goals of the family.
Majority of the working women are aware that term insurance is one of the most affordable ways of providing financial protection to their families. However, it can be confusing what kind of insurance policy needs to be taken to make sure they have an ideal term insurance plan.
Before browsing for a term insurance, below pointers need to be paid attention:
One size does not fit all, so choose the term plan that suits you best
The market is flooded with various term insurance plans. A term insurance plan is simple and easy to understand. If you are a working woman who has a young family and share half of your income along with your husband to pay off the house loan or any major debt then you should choose a long span of term plan. Most term insurance policies cover between the ages of 18 to 65. It is always better to buy a term plan at a young age as premiums increase with age.
Most insurers have term policies starting with a sum assured of INR 25 lakhs and it can go up to a crore or two depending on your income. The thumb rule is to take a term plan that will be 15 to 20 times of your income.
If you are a single mother, read this:
If you are single mother and you are the only source of income for your child then you must consider a good term insurance policy which will protect your child from financial woes in your absence. A term insurance is the replacement of your monthly income when you are gone and that is the reason the term insurance cover requirement calculation is done on your current income. If you have a home loan or any large debt then getting term insurance gets all the more important for you.
Let’s have a look at the top ten term insurance plans as per the claim settlement ratio data 2015-16 available in the market that a working woman can consider.
So, based on your requirements choose the term plan that suits you best. The best term plans are available online which not only offer good premium rates but also offer complimentary assistance support during the time of claims.
Recommended Read: Why Women Should Buy Term Insurance Without Fail?