Why Term Insurance Is Essential for Women?

Written by : Knowledge Centre Team

2021-05-11

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5 minutes read

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Today, women are advancing in almost all the fields, and we are seeing them in leadership positions more than ever before. If we look at the financial sector, statistics show that four out of five banks in India have women in leadership roles. However, when it comes to investing their own money women tend to be nervous to do so. Ironically they are more than capable of handling day to day monetary budgeting but discussing family finances makes many women uncomfortable. Research shows that 8 out of 10 women are uncomfortable discussing their finances even with their close-knit family members.

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Low life insurance penetration for women

Women are insured in severely low numbers in India. Only 59% of women have life insurance policies, while the same survey shows that 68% of men have life insurance policies. It is particularly crucial for salaried women to participate in financial planning similar to their involvement in contributing towards family income.

Key Reasons why term insurance is better for women

Increasing Financial Dependence: As gender parity rises at an astronomical rate in India, women are playing a huge role in contributing to the household income. Although India still has a long way to go, women now contribute to 17% of our GDP. As an increasing number of households have come to depend on women’s contribution to income, the loss of income could deal a huge blow to Indian families. Thus, it is essential that women ensure that their family’s future is secure, even in their absence.

The Female Homemaker’s Contribution: The Indian homemaker’s contribution to the household is often underrated. And contrary to popularly held beliefs, we can put a monetary value to their contributions. As per a report from ET Wealth, Indian homemakers contribute to at least Rs. 45,000 worth of work around the household. In the absence of the homemaker, the family would be forced to shell out significant sums of money towards childcare, elder care, housekeeping, cooking and much, much more. The loss of a homemaker could result in a severe financial setback for the family. Thus, it is essential that women insure themselves and protect the financial interests of their family.
Retirement Planning: Many folks are unaware of the savings component of term insurance policies. Well, certain term insurance plans also come with maturity benefits. A survey conducted in 16 cities with 4500 respondents showed that only 33% of women have savings towards future stability. This survey showcased that women tend to be more focussed towards saving for their children's education but do not prioritize planning for their own old age. This spells out the urgent need for women to opt for term insurance plans with maturity benefits, so as to avail dual benefits of protection and savings. Canara HSBC iSelect Term Plan offers maturity benefits i.e. the return of total premiums paid in the event of no claim being made.
Financial Liabilities: In certain cases, women may take joint loans to help share the burden of repayment with their husband. Due to unforeseen circumstances if anything were to happen to you, your husband would be solely responsible for paying back the amount. If you have a term insurance in place, you would be able to help him repay the loan/s even in your absence.

After establishing the importance of term insurance for women, let us look at one of the best term policies available from Canara HSBC Life insurance iSelect Smart360 Term Plan

The Canara HSBC iSelect Smart360 Term Plan:

iSelect Smart360 Term Plan offers comprehensive protection for you and your family. Features of this term policy include:

Spousal Coverage
Three different payout options: monthly income payout, lump sum payout, part lump sum-part-monthly income payout
Flexible coverage options - increasing, decreasing or level coverage
Tax Benefits
Option to increase coverage with riders such as: Accidental Disability, Child Support, Accidental Total Permanent Disability Riders
Maturity Benefits

Conclusion:

Today financial protection is a key requirement for both men and women. Women still tend to have low rates of investing in insurance and they must purchase a term insurance plan. Selecting a term plan such as Young Term Plan is going to enable them to protect their partner and dependent’s future in their absence.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.