Reasons Why Women Should Purchase A Term Insurance Plan
Updated On Jun 16, 2021
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Since the very old times, women have always been the financial planner in most households. In the new times, along with the men, women too, are stepping out and earning their own living. Like in old times, there was only one earning member in the family but in the newer generation it is mostly about mutual partnership. Women are now equally a part of the decision making process and also taking financial decisions of the family.
One of the simplest and easiest ways of keeping one’s financial future secured is via a term plan. Most of the term insurance plans are available to women at lower premiums rates than men in a bid to encourage women participation in financial planning. In this article, we will talk about a few key reasons which make it highly imperative for women to buy a term insurance plan.
Reasons Why Women Should Purchase Term Life Insurance Plan
The importance of term life insurance plans for women is as equal as to men. This creates a safety net for the financial responsibilities and benefits for the family. The reasons why women too should purchase term insurance plans are listed below:
1. Financial Stability
The main objective of a term plan is to help women secure the future of their family and loved ones in their absence. A term plan provides a death benefit in case of an untimely demise of the life assured to the nominee so that the financial standing of the family can remain intact even in the time of emotional grief.
2. Women Specific Medical Expenses
There are various medical conditions which are specifically related to women, the expenses of which are sometimes on the higher end. Term insurance plans offer add-on covers which provide for coverage for such health conditions. These financial coverages are really helpful to women so that they do not face any financial crisis, especially in their old age.
3. Peace of Mind
Another advantage offered by term plans is immense peace of mind. By knowing that their family will remain financially secure even in their absence, women can maintain their mental peace.
4. Lesser Premiums For Women
Women's term life insurance plans come with lower premium rates. Women in every household are not stepping out and working. So to facilitate that women are offered to pay less monthly premiums. This is one benefit which is not found in term life insurance plans available to men.
5. Tax Benefits
The premiums paid towards a term insurance plan qualify for tax deduction under Section 80C of the Income Tax Act. Maaoreover, the proceeds of a term plan are tax-free. Thus, these benefits help women plan their taxes in a more efficient manner.
Women are the backbone of every household. They not only support their family emotionally but also financially. Thus, every woman should have a term plan as a part of their financial plan so that they can financially shield their family even in their absence. Besides offering peace of mind, these term plans also enable people to save their taxes by enjoying various incentives available under the Income Tax Act, 1961.
Also read :- What are Joint Life Term Insurance Plans?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.