As a woman, have you thought of opting for an insurance policy to secure your family members? It might not be the first thing on your mind, but it is crucial to have a term plan because your contribution to the household is massive as a homemaker and as a financial contributor. In case of death, you wouldn’t want your loved ones to experience a financial blow. So, let’s understand the necessity of term insurance for women and its benefits.
What Is Term Plan?
A term plan is an agreement made with the insurance company to pay a lump sum death benefit to the policyholder’s beneficiary in case of death. In return, a regular premium has to be paid for a fixed period of time to keep the policy active. In a term insurance policy, your beneficiary can only avail the death benefit in case something unfortunate happens to you during the policy term. There is no maturity benefit component available in a term plan after it expires. The insurance policy secures your loves ones with financial cushioning during a tragic event.
Why Is Term Insurance for Women Necessary?
Protection in Case of Death
If you are a working professional or a housewife, your contribution is immense towards your family. A death benefit can help your spouse get back on their feet and take care of the family and children in your absence.
Regular or Lump Sum Payouts
If you have added riders to your term plan, then you can avail benefits like lump sum payout on diagnosis of a major illness, sum assured in case of accidental death or regular payouts in case of permanent disability. To protect you from such uncertain situations that can affect anyone, riders give you that extra coverage to safeguard your family.
Tax Benefits
You can claim the premiums paid towards a term insurance plan under Section 80C to get tax benefits and reduce your taxable income. Also, your beneficiary can claim the death benefit under Section 10(10D) of the Income Tax Act, 1961.
Benefits of Term Insurance for Women
There are vital benefits offered in life insurance for women, so may it be someone seeking it as a working professional or need term insurance for housewives. Here are some of the benefits:
- Special premium rates are offered in term insurance for women
- An extensive cover with rider benefits like critical illness, accidental death, and many such elements can be added to the term plan
- Lucrative premium rates are granted to women with a healthy lifestyle
Now that you are aware of the importance of a term insurance plan for women, you should opt for a reputed insurer who offers an attractive premium rate after comparing multiple premium quotes. It is always advised to get premium quotes and term plan offers from various trustworthy insurance companies so that you can choose the most suitable one for you.