Life Insurance Plans for every working woman

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Women have been breaking barriers in all the realms of life - whether it is the glass ceiling in the corporate world or international records in different sectors. But when it comes to investments, women in India have rather been reluctant to deviate from the traditional forms of investments like gold and bank deposits. However, there is one investment that is extremely crucial for everyone that we don’t talk about often - life insurance.

Even though life insurance has evolved into a diverse range of instruments that offer life cover and surety, our thoughts on this worthy investment remain primitive. There are different life insurance schemes that cater to the needs of women in different stages of their life. Whether you are a young professional still trying to figure out your investment options or a mother looking to secure your child’s future, here’s the type of life insurance that you could go for:

The First Time Investor & Term Plans

The first type of life insurance is probably one of the most simple tools - term plans. As the name suggests, term plans are basic life insurance covers that have systematic premium payouts over a fixed period of time. One of the biggest benefits of term plan has to be the simplicity of the cover, and the added tax benefits that it offers under section 80C of the Income Tax Act, 1961. However, what makes term plans the perfect choice for young women who have just started working is that the premiums are extremely affordable, especially at a younger age!

The systematic investor & ULIPs

ULIPs or Unit Linked Insurance Plans are perfect for women who have a fair understanding of their income, spends, needs and wants. If you are keen on making systemic investments but are sceptical of directly trying heavy risk instruments, ULIPs are perfect for you! With a minimum lock-in period of 5 years, they are long-term investments that give out considerably higher returns while also ensuring the safety and security of their family. The fact that ULIPs are also exempt from Long Term Capital Gains Tax, unlike mutual funds, also gives them an upper hand in the investment game.

New Moms & Endowment Plans

Becoming a mother is a huge milestone and adds heaps of responsibilities on one's way. The best way to embark on this journey has to be by ensuring that your child has a safe and secure future, even in the case of uncertainties. This is where an endowment policy comes into the picture. It is a standard life insurance plan that offers a lump-sum payout. Opting for a cover of Rs 50,00,000 to Rs 1,00,00,000 is a smart way to ensure that your family has some financial backing in your absence.

Women & Critical Illness Plans

One of the most widespread myths about term insurance is that you just need one plan that offers a larger payout! Since our needs change from time to time, we need to upgrade our life insurance policy with it. This is the reason that every woman needs to invest in Life insurance plans with Critical Illness Cover. The high-stress environment that we live in, combined with the sheer increase in susceptibility to critical illnesses like cancer and heart disease have made this investment a must for every financial plan. A Critical Illness Protection Plan allows every woman to do away with the financial stress of tackling health issues like cancer or heart-diseases, by allowing access to lump-sum payouts of a part of your life insurance cover, which helps manage the financial aspect of the disease.

Is retirement plan a necessity?

Retirement plans are life insurance policies which tackle our post-retirement needs of medical and living expenses. This is the perfect option for women who are planning their retirement with an aim to stay independent. The biggest advantage of a retirement plan is that along with tax benefits on the premiums paid, the payouts are also tax-free under Section 80CCC and 10(10A) of the Income Tax Act, 1961.

In addition to these array of options in the life insurance policies, there is also a provision that allows you to opt for monthly payouts of your insurance policy, instead of the traditional lump-sum payout. This option ensures that your family’s financial needs are taken care of, even in the case of a calamity.

Source: The Times of India