It is said that when it comes to money management, women are far better than men. Gone are the days when they were considered to be good only in the kitchen. The twenty-first century woman is reaching new pinnacles every day. Even in corporate, banking and finance sectors, women have taken up prominent roles, some even proudly founding and running companies.
But the problem is, even though women are empowered and break every barrier that comes in their path, when it comes to investing for themselves, they are still one step behind. Although the Indian housewife is excellent with money management and makes sure that she is able to run the house with a particular budget, when it comes to talking about money they hold back.
Women too can be effective at financial planning and need not leave that to the man every time. They are the co-earners in several Indian households and it is exactly why women need term insurance as well.
Term insurance plan is an insurance policy which is supposed to offer coverage until a fixed term and in case of the policy subscriber’s demise, the subscriber’s nominee is eligible for the sum assured. A term plan provides a sense of stability and calmness to the insurer so that their family can be financially independent in their absence. The only downside of a term plan is that there are no maturity benefits for the insurer. This means that if the policy insurer is safe and sound during the term plan phase and survives the term plan, he or she is not entitled to any term plan benefits.
Why are term plans important?
Term plans should be a part of every woman’s investor portfolio. They offer financial security and since the future is unknown, term plans also offer financial stability for the dependent family members. But women should be careful before investing in a term insurance plan and only invest in a plan that has the best coverage benefit for the insurer’s nominees. A woman, irrespective of her martial or employment status should opt for a term insurance plan. But she needs to make sure of the fact that the term insurance she is about to buy meets all her financial requirements.
Why should women get a term plan?
There are more than one reasons as to why women should get a term plan. Here are some of them:
Women receive high insurance amounts: There are some term insurance plans that offer up to Rs. 1 crore of coverage in case of the subscriber’s demise for a monthly of Rs. 400 to Rs. 500. Some insurance companies also accept annual term insurance premium payment so you are spared from the hassles of monthly instalments.
Protection for children: If you are a single mother, a term insurance plan can secure your child’s future. Raising a child as a single parent is not an easy job and you want to make sure that your child doesn’t face any financial troubles in your absence. A term insurance plan can help give your children the financial security they deserve.
Protection for elders: A term plan can also help the other financial dependent members of the family, like your elders. A woman takes care of all the family members and in case she is a strong single independent woman taking care of her parents, she has to make sure that they are insured too.
A must for investment portfolio: Every working woman must add a term insurance plan to her financial portfolio. You can save a certain amount per month and pay the premium for the term plan.
But choosing the right term plan women can make sure that their legacy is carried forward even in their absence.