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Reasons Why Life Insurance Is Important For Women

dateKnowledge Centre Team dateDecember 06, 2020 views145 Views
Reasons Why Life Insurance Is Important For Women

Life insurance is a contract between an insurer and a policyholder. By far, it gives out payment after the person dies for their respective family. Is it beneficial for a woman to invest in a life insurance policy? Yes, often more so for women, this plan can prove to be a financial safety-net for unforeseen emergencies for homemakers. With changing trends, women are now moving towards financial liberation by exploring insurance and other financial instruments as a savings mechanism.

What is the role of women in society?

Women and girls represent the largest contingent of this unenviable group, and of the 1.3 billion people who live in poverty, 70% are women. From having the power to handle half the workforce to playing the central role of being a mother, sister, wife, daughter, and homemaker, it is not uncommon for women to be called the 'money manager' of the house in Indian families.

The following reasons will help you understand why and what will be the benefits of a life-changing insurance plan:

  • Peace of mind- It can allow women to be freer physically and financially to pursue their goals.
  • Cost-effective- A more cost-effective way of saving your income and securing your substantial coverage.
  • Saving for your future helps secure your household's dual-income well after your partner's and your retirement.
  • Leaving behind a legacy- Your children can use the monetary benefits of your insurance.

Why and when a woman must invest in a Life Insurance plan?

Investing in life insurance is best done while you are still young and relatively healthy. The older you become, the more the need grows to save for any further emergencies throughout your life.

Your life insurance gives your family choices by providing the benefits to help pay off debts, meet housing payments and ongoing living expenses, fund college educations for your children or grandchildren, and much more. Life insurance provides financial stability when it's needed most.

An investment strategy for beginners

Before taking the investment plunge, you must determine your long-term or short-term financial objectives as an investor. Do you want to build up a corpus to fund your child's education? Are you saving for your wedding expenses? Or, is investment merely a tool for making quick money for you? The reason why setting your final objective in coherence with the total capital invested and the net earnings expected should always be your first and foremost priority.

The first time investor and term plans

A Term Plan is the first and straightforward tool for investing. As the name suggests, term plans are essential life insurance covers having systematic premium pay-outs over a fixed period. The significant benefit of term plans has to be the simplicity of the cover and the added tax benefits. For young women who have just started working, term plans are incredibly affordable. The low premium is one of the significant benefits of a term plan. For example, if you bought a Rs 1 crore term plan at the age of 25, you would be paying a premium of as little as Rs 500 a month or Rs 6,000 for the year.

Single women have expenses

Often, single women do not get themselves insured since they have no one who depends on them to provide food and shelter. But you have to realize that in the unfortunate event of you passing away, the burden of car loans, education loans, and even home loans are something that your families would have to look after. A term plan is an excellent option for a single woman.

Are you still planning to work after your 60s? Make a smart choice and invest your money smartly. Staying fit after the 60s is a big challenge. Therefore it is fair that you have health insurance coverage to be assured of a financial backup if a medical contingency arises.

Choose your best plan

Nowadays, we come across many ads describing which insurance plan is best to support women; it all depends on you. The plan that suits you the best is the plan that you choose.

  • RETIREMENT INSURANCE PLAN- ensure you lead an independent life in your retirement years.
  • CHILD INSURANCE PLANS- the best way to secure your child's future.
  • HEALTH INSURANCE PLAN- customize to cater to health requirements.
  • Be your family’s strongest pillar

A woman's life makes a difference to so many people around her. Do you have a desire that your children have the best education and pursue all their dreams? Financial backing can help your child ensure all those vast expenses. Secure your child's future by investing in the best possible plan.

Contribute to your family’s income

With the changing time and the change in people's mindset, it is becoming necessary that every woman have their life secured. Life insurance helps women secure their savings, income (if any), and long-term or under unforeseen circumstances help the entire family.

Minimize your premium rates

Women often get cheaper premium rates in comparison to the male counterpart. The premium is discounted to entice female participation in buying a life insurance plan. Usually, 10% to 20% of the premium is waived off when a woman takes a policy.

How much life insurance a woman should have?

The ideal life insurance should be at least 5-10 times her income and savings. Enough life insurance will help you and your family in the long run. A report from Insurance Regulatory and Development Authority of India (IRDIA) says women comprise 48% in this country in which only 32% of insurance policy was sold in total in 2017-18, which gives us how a women's growth and contribution towards the society is increasing every year.

Also, insurance agents are encouraging more and more women to buy a life insurance plan. The insurance agents and other intermediaries have successfully sold insurance to only 139 women out of a population group of 10,000 women. It indicated that they did not approach either a large number of women or a large number of women have declined to consider life insurance as a beneficial financial instrument.

Women's contribution to economic growth and society is increasing every year. The number of women buying life insurance is increasing rapidly. India's most trusted life insurance corporation, the most trusted by women, concludes that the proportion of LIC sold by them is 39%, while for private investors, it is 27%.

Life insurance coverage is suitable for anyone at any life stage. Individuals at varied stages of life can make the wise decision to grow their wealth, build their dreams and nurture their loved ones' aspirations for a better and brighter future by understanding the vital role of life insurance in financial planning. This life insurance policy will help women and every individual who wishes/desires to take up insurance in their life. Lack of insurance of any family member can affect the rest of the family members' financial and emotional well-being. Therefore, it is always advisable to take up insurance plans seriously and always read each plan before jumping to conclusions.

Suppose a woman working somewhere must get their life insurance for their safety. Also, women should not ignore taking life insurance to protect their future life. Plus, they should not think that they aren't eligible to take the policy because they don't earn. It would be best if you had protection from nearby casualties.

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Annual Income (In Lacs)

Our Products

TERM Insurance PLAN

TERM Insurance PLAN

Whole life cover option available

Increase your life cover with changing life stages

Return of premium & in-built protection options

Multiple premium payment options

Avail tax benefits on premiums paid as per tax laws

ULIP PLAN

Unit Linked Insurance Plan

8 funds and 4 portfolio strategies to invest

Loyalty additions and wealth booster

Return of Mortality Charge is available on Maturity under all three cover Options

Flexibility of switching between the fund options to take benefits of market movements or change in risk preference

Pos Easy Bima Plan

Top Benefits

Hassle free

Get double life cover in case of accidental death

Choice of flexible premium payment and policy term

Avail tax benefit on premium paid

Reasons Why Life Insurance Is Important For Women

dateKnowledge Centre Team dateDecember 06, 2020 views145 Views
Reasons Why Life Insurance Is Important For Women

Life insurance is a contract between an insurer and a policyholder. By far, it gives out payment after the person dies for their respective family. Is it beneficial for a woman to invest in a life insurance policy? Yes, often more so for women, this plan can prove to be a financial safety-net for unforeseen emergencies for homemakers. With changing trends, women are now moving towards financial liberation by exploring insurance and other financial instruments as a savings mechanism.

What is the role of women in society?

Women and girls represent the largest contingent of this unenviable group, and of the 1.3 billion people who live in poverty, 70% are women. From having the power to handle half the workforce to playing the central role of being a mother, sister, wife, daughter, and homemaker, it is not uncommon for women to be called the 'money manager' of the house in Indian families.

The following reasons will help you understand why and what will be the benefits of a life-changing insurance plan:

  • Peace of mind- It can allow women to be freer physically and financially to pursue their goals.
  • Cost-effective- A more cost-effective way of saving your income and securing your substantial coverage.
  • Saving for your future helps secure your household's dual-income well after your partner's and your retirement.
  • Leaving behind a legacy- Your children can use the monetary benefits of your insurance.

Why and when a woman must invest in a Life Insurance plan?

Investing in life insurance is best done while you are still young and relatively healthy. The older you become, the more the need grows to save for any further emergencies throughout your life.

Your life insurance gives your family choices by providing the benefits to help pay off debts, meet housing payments and ongoing living expenses, fund college educations for your children or grandchildren, and much more. Life insurance provides financial stability when it's needed most.

An investment strategy for beginners

Before taking the investment plunge, you must determine your long-term or short-term financial objectives as an investor. Do you want to build up a corpus to fund your child's education? Are you saving for your wedding expenses? Or, is investment merely a tool for making quick money for you? The reason why setting your final objective in coherence with the total capital invested and the net earnings expected should always be your first and foremost priority.

The first time investor and term plans

A Term Plan is the first and straightforward tool for investing. As the name suggests, term plans are essential life insurance covers having systematic premium pay-outs over a fixed period. The significant benefit of term plans has to be the simplicity of the cover and the added tax benefits. For young women who have just started working, term plans are incredibly affordable. The low premium is one of the significant benefits of a term plan. For example, if you bought a Rs 1 crore term plan at the age of 25, you would be paying a premium of as little as Rs 500 a month or Rs 6,000 for the year.

Single women have expenses

Often, single women do not get themselves insured since they have no one who depends on them to provide food and shelter. But you have to realize that in the unfortunate event of you passing away, the burden of car loans, education loans, and even home loans are something that your families would have to look after. A term plan is an excellent option for a single woman.

Are you still planning to work after your 60s? Make a smart choice and invest your money smartly. Staying fit after the 60s is a big challenge. Therefore it is fair that you have health insurance coverage to be assured of a financial backup if a medical contingency arises.

Choose your best plan

Nowadays, we come across many ads describing which insurance plan is best to support women; it all depends on you. The plan that suits you the best is the plan that you choose.

  • RETIREMENT INSURANCE PLAN- ensure you lead an independent life in your retirement years.
  • CHILD INSURANCE PLANS- the best way to secure your child's future.
  • HEALTH INSURANCE PLAN- customize to cater to health requirements.
  • Be your family’s strongest pillar

A woman's life makes a difference to so many people around her. Do you have a desire that your children have the best education and pursue all their dreams? Financial backing can help your child ensure all those vast expenses. Secure your child's future by investing in the best possible plan.

Contribute to your family’s income

With the changing time and the change in people's mindset, it is becoming necessary that every woman have their life secured. Life insurance helps women secure their savings, income (if any), and long-term or under unforeseen circumstances help the entire family.

Minimize your premium rates

Women often get cheaper premium rates in comparison to the male counterpart. The premium is discounted to entice female participation in buying a life insurance plan. Usually, 10% to 20% of the premium is waived off when a woman takes a policy.

How much life insurance a woman should have?

The ideal life insurance should be at least 5-10 times her income and savings. Enough life insurance will help you and your family in the long run. A report from Insurance Regulatory and Development Authority of India (IRDIA) says women comprise 48% in this country in which only 32% of insurance policy was sold in total in 2017-18, which gives us how a women's growth and contribution towards the society is increasing every year.

Also, insurance agents are encouraging more and more women to buy a life insurance plan. The insurance agents and other intermediaries have successfully sold insurance to only 139 women out of a population group of 10,000 women. It indicated that they did not approach either a large number of women or a large number of women have declined to consider life insurance as a beneficial financial instrument.

Women's contribution to economic growth and society is increasing every year. The number of women buying life insurance is increasing rapidly. India's most trusted life insurance corporation, the most trusted by women, concludes that the proportion of LIC sold by them is 39%, while for private investors, it is 27%.

Life insurance coverage is suitable for anyone at any life stage. Individuals at varied stages of life can make the wise decision to grow their wealth, build their dreams and nurture their loved ones' aspirations for a better and brighter future by understanding the vital role of life insurance in financial planning. This life insurance policy will help women and every individual who wishes/desires to take up insurance in their life. Lack of insurance of any family member can affect the rest of the family members' financial and emotional well-being. Therefore, it is always advisable to take up insurance plans seriously and always read each plan before jumping to conclusions.

Suppose a woman working somewhere must get their life insurance for their safety. Also, women should not ignore taking life insurance to protect their future life. Plus, they should not think that they aren't eligible to take the policy because they don't earn. It would be best if you had protection from nearby casualties.

Related Articles

Browse by Categories

Get a Call Back

Do you want us to call back Please fill the form below

Annual Income (In Lacs)

Our Products

TERM Insurance PLAN

TERM Insurance PLAN

Whole life cover option available

Increase your life cover with changing life stages

Return of premium & in-built protection options

Multiple premium payment options

Avail tax benefits on premiums paid as per tax laws

ULIP PLAN

Unit Linked Insurance Plan

8 funds and 4 portfolio strategies to invest

Loyalty additions and wealth booster

Return of Mortality Charge is available on Maturity under all three cover Options

Flexibility of switching between the fund options to take benefits of market movements or change in risk preference

Pos Easy Bima Plan

Top Benefits

Hassle free

Get double life cover in case of accidental death

Choice of flexible premium payment and policy term

Avail tax benefit on premium paid

Frequently Asked Questions (FAQs) Related to Life Insurance Policies

The premium is one of the most important factors to consider before buying a life insurance policy. Many people buy a life insurance policy with a high sum assured but are unable to process the premiums for the entire premium payment tenure. You can get a better idea of the premium outgo with the premium calculator available in the 'Tools and Calculator' section of www.canarahsbclife.com.

Life insurance plans come with several riders which increase the efficiency of the policy for the buyer. For instance, if you have a history of terminal illness in your family it would be advisable to opt for terminal illness rider with your term insurance plan. Riders or add-ons help in customising the standard policy benefits for the requirement of different families. The iSelect term insurance plan comes with a built-in cover for terminal illness, and option for protection against accidental death or disability. You can also opt to cover your spouse's life under the same policy by paying an additional premium.

Life insurance companies calculate the premiums based on several factors such as age, gender and occupation.

Age: It is one of the biggest factors that influence life insurance premiums. Premiums tend to be low when the life insured is younger as the chance of contracting diseases is low. Young people also opt for the best life insurance policies with longer tenures and pay premiums for a longer duration, which makes the policy cheaper for young people.

Gender: The insurance premium for women is generally lower when it comes to life insurance plans. Women live longer and pose a lesser risk of a claim leading to lower premiums for them.

Lifestyle habits: The premiums for people who smoke or drink is always higher due to higher health risks.

Policy term: Policy terms are also taken into consideration by insurers while deciding the premium amount. Life insurance policies with longer tenure are cheaper as compared to short-duration policies.

Mode of purchase: The platform that you use to buy the best life insurance policy also determines how much you will have to pay for the plan. People who buy life insurance policies online have to pay lower premiums as compared to offline policies.

Occupation: The nature of your work is an important factor that influences the premium amount. Certain occupations like shipping and mining are considered more dangerous as compared to jobs in services industries. The insurance premium rises with the risk profile.

Processing life insurance claim is a transparent and smooth process with Canara HSBC Oriental Bank of Commerce Life Insurance.

In case of the death of the life insured, the nominee will have to intimate the company by filling a Death Claim Form and sending it to the nearest branch office.

Once the form is received, the claim is registered by the insurer.

After the registration of the claim, the company will send the claims pack along with the related forms such as physician’s statement form and employer certificate that need to be filled.

Along with the duly filled forms a few documents such as original [policy document, death certificate, copy of bank passbook, hospital or treatment records, photo identification and address proof have to be provided.

The claim is processed on the submission of relevant documents. Once the documents are verified, the claim amount is released post all due diligence.

Household expenses rise with age. The cost of children's education increases along with other lifestyle expenses. The iSelect term plan offers an option to increase the cover according to the life stage. If opted, the insurance cover increases by 25% at every 5-year terminal till the 20th policy year.

Even though a life insurance policy is bought to protect your family in your absence, there are chances of the claim being rejected due to several factors.

False information: If the policyholder provides false information or conceals important information while buying the life insurance policy, the insurer has the right to reject the claim after his/her death.

Type of death: Deaths due to suicide in first policy year, intoxication or pre-existing disease is not covered under life insurance plan.

Premium payment: The payment of premiums on time is of utmost important to avail the benefits of life insurance. Life insurance policy may lapse on the failure to pay the premiums

Nominee details: A life insurance company can put the claim on hold if the nominee details have not been filled or not been updated by the policyholder.

Suicide: If the life insured commits suicide within 12 months of buying the life insurance policy, the insurance companies generally pay 80% of the total premiums paid.

Buying the best life insurance plan online is not only safe but a better option. Online life insurance policies have lower premiums and the individual is not required to visit the insurer's branch or a bank. The best life insurance policies online insurance offer higher benefits. Customers should, however, buy online life insurance policies only from credible insurers and should check for SSL certificate on the website to ensure that the website is legitimate.

The cost of life insurance policies varies depending on factors like age, gender and occupation. The average cost of life insurance plans, especially term plans, is very low compared to the amount of coverage offered.

An individual is allowed to have multiple life insurance policies. People opt for more than one life insurance policy to increase the cover or avoid claim rejection. In case of multiple life insurance policies, even if the claim is rejected by one insurer, the beneficiaries may receive the benefit from a different insurer.

Life insurance policies are of different types. In case of unit-linked or endowment policies the policyholder receives the maturity benefit at the end of the policy term. However, in the case of term insurance plans, there are no maturity benefits. The death benefit is only paid out after the death of the life insured.

When you buy a life insurance policy, the insurance company asks for the nominee details. Only the person named as the nominee in the life insurance plan can cash out in case of death of life insured.

A life insurance policy is generally taken for a specified period. After the policy duration of a term plan gets over, the policy simply terminates and ceases to exist. However, in case of unit-linked plans or endowment, you can use the policy as a tool for retirement planning and the accumulated corpus is used by the insurer to pay you monthly amounts for your entire life.

If a policyholder purchases a term plan for 25 years and dies during the policy term, the beneficiary receives the death benefit. In case of iSelect term plan, the policy provides four payment options to the beneficiaries. If the regular payment option is chosen, the policy works as a source of regular income.

It is a popular misconception that life insurance plans are only for accidental deaths. A term life insurance plan like iSelect Star Term Plan also covers terminal disease along with death. A terminal illness cover is important as health insurance pays only for the cost of treatment and hospitalization, but a terminal illness cover pays you a lump-sum amount which takes care of other expenses. On the other hand, unit-linked policies such as Invest 4G cover death and also provide decent returns for other financial goals such as buying a house of child's education.

It is ideal to buy a life insurance plan in your early 20s because it is the time when people have just started with their professional life and so there are lesser responsibilities and financial liabilities to take care of. Also, if you buy the best life insurance plan at this age, you will be paying relatively lower insurance premiums since it’s a due fact that mortality rate in case of young people is low. And that is why life insurance companies offer lesser premium rates to younger people as they think that they are most likely to be fit and healthier with less chances of filing a claim in future.

Once you have cancelled your life insurance policy, you will instantly lose your life insurance cover. Afterwards, your insurance company will get in touch with you and ask for valid reasons regarding the cancellation of your policy. In case you cancel your life insurance policy within the grace period, i.e. 15 to 30 days, depending on your insurer, then insurance company will reimburse the premium amount paid by you. But, no refunds will be paid to you if the policy is cancelled after the grace period.

Yes, you can take life insurance under Married Women’s Property (MWP) Act, 1984 only if you are a married man and a resident of India. Buying a life insurance plan under MWP Act would be helpful in saving your family’s financial well-being when you are not around. As per this policy, only wife and children would be eligible to receive the death benefits. You can also buy a policy if you are a widower or a divorcee. However, in that case, you can give your child’s name as your beneficiary. It is very simple to buy a life plan under MWP Act. All you need to do is to fill up an MWP addendum while purchasing an insurance policy.

Yes, there are different payment options for you to pay premiums. Here’re some of them

    1. Regular premium payment option – This premium payment option allows you to pay premiums equal to your policy term either monthly, quarterly, half yearly or annually.

    2. Single payment option – Through this premium payment option, you can pay the lump-sum amount in one single payment.

    3. Limited payment option -In this premium payment option, you can pay premiums for a specific period of time less than policy term either monthly, quarterly, half yearly or annually, but benefits of insurance can be enjoyed for a longer period of time.

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