As we know a Term Insurance provides a sense of financial security to the family members in an unfortunate event of demise of the policyholder. Some of the plans offer level premiums, on the other hand some offer increasing or decreasing benefits, and some provide an option to convert the plan to permanent one. They are pure life cover, which means there is no savings or profits components.
Tem Insurance for women means death benefit that is offered to her family members, with budget friendly premium amount, i.e. up to 20% more affordable than premium charged in case of males.
Why Should a Women Buy a Term Insurance Plan?
After understanding what is term insurance, now let us knowthe reasons that will clarify the need of a term insurance for women:
- Financial Independence:
The term plan with maturity benefits takes care of all your responsibilities towards family, hence providing financial stability. In any event of unforeseen death of the insured, the family of the woman will be given sum assured allowing to stabilize the finances.
- To Pay Off the Outstanding Debts:
In an event of an unfortunate demise of the insured, the term plan will take care of outstanding debts, if any. In the absence of insured women, it will take care of the financial burden towards outstanding loans of the family.
- Tax Saving Planning:
Nowadays, tax planning has become important for women also since the time they have also started working and earning for their families. According to the section 80C of Income Tax Act, 1961, the payment of premium towards term plan is exempt from tax. The death benefit received from term plan is also exempt from taxes u/s 10(10D), making term insurance plan ideal for women also.
- Legacy for Future Generations:
Women can secure the amount of sum assured for their family members i.e. future generations at an affordable premium cost building a legacy after themselves.
- Affordable Premiums:
A term plan is a basic insurance policy, offering quite a high sum assured at comparatively low premium amount. A Term Plan for women are even more affordable as they pose lower risk for insurance companies due to high life expectancies in case of women.
Different Categories of Women who should Buy Term Plan
Provided below are the different categories of women who can buy a term plan:
- Earning Women:
The earning women can secure the future of her dependent parents in case of an unfortunate absence by purchasing a term plan. By buying a term plan, it safeguards the future of parents in case of loss of the breadwinner.
- Self-Employed Women:
It protects the family members of women from burden of any outstanding debts such as home loan in their absence.
- Housewives:
Though housewives don’t contribute in the earnings of the family, but the term insurance allows to help their family members in case of financial instability occurred due to loss of a loved one.
- Single Mothers:
The term plan for single mothers fulfills the dreams of their kids and pay for higher education in case of their unfortunate demise.
How to Buy a Term Insurance Plan for Women?
Mentioned are the steps to buy a term insurance plan for women:
Step 1: Visit the webpage to purchase term plan for women.
Step 2: Provide the details such as name, contact number, gander, date of birth, etc.
Step 3: Provide the details related to your occupation, smoking habits, educational qualifications, annual income, etc.
Step 4: Check out the available plans and choose the most appropriate one as per your requirements.
Points to be taken into Consideration while Choosing the Best term Insurance
Before you buy term insurance, below mentioned points should be taken into consideration:
- Premium Rates
As we know women have high life expectancy as compared to men, hence the insurance companies offer them premiums at discounted rate. This is because the chances of untimely death in case of women are lower.
- Life Cover
A large life cover should be chosen as this amount will be paid to her family members in case of any mishappening.
- Policy Term
The policy tenure should be such that the financial goals and the future plans should be well aligned with each other.
- Available Riders
Check out all the available riders, which should include the suitable riders in the base plan. The same is done to enhance the coverage of policy at a low premium cost within the same plan.
- Premium Payment Options
Check out the different options available for payment of premium, where some plans provide the option to pay it in lump sum, for whole or limited policy tenure, on a monthly, quarterly, semi-annually, or annual basis.
- CSR of the Insurer
The claim settlement ratio reflects the reliability factor of the insurer. Women, while opting for a term plan should consider the one with high CSR in order to increase the chance of claim being settled.
- Read the Policy Details
Before buying term insurance for women, the policy documents should be read properly to know what is included and what’s not. Reading the terms and conditions of a policy clears all the doubts that may arise.
Conclusion
In earlier times, women do not used to buy term plan for themselves due to them being housewives or not allowed to work. But nowadays, as they are entering into working sector, and restrictions also became loosened, they can buy term insurance plan by comparing different plans online, sitting at the convenience of their homes and buying the best one for themselves and family members. The term insurance in case of women is affordable as they possess higher life expectancy, resulting in low risk for insurers.
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