Women are moving towards financial liberation but not insurance. Here’s why term insurance is crucial for women

It wouldn’t be an exaggeration to say that this is an exciting era to be a woman. Women are not only realising their self-worth but also funding it; they are asking for equal opportunities and are leaving their comfort zones to make this world a non-discriminatory place. They make for a huge chunk of the Indian workforce and their participation is far greater than is measured by the data. More than two-thirds of women in India are breadwinners or co-breadwinners in the family.

India has always regarded women to be their families’ money managers, thanks to their pro-cash-saving skills. They are also taking up leading roles in the finance and banking sector. The mention of our current Minister of Finance, Nirmala Sitharaman, is apropos. And while women today are more socially empowered and are working concurrently with their husbands to provide for their needs and build a better future for their children, they are happy to let the men in the family take over when it comes to their financial planning. It is the need of the hour that along with sharing family responsibilities, working women attempt smart financial planning and secure their lives against uncertainties that may affect their financial status.

Women are grossly under-insured in India with only 33% saving for future stability, according to a survey of 4,500 respondents in 16 cities.* Women apparently spend a lot more of their salary for the household — with 42% of earnings diverted to basic expenses, as against working males who spend only 28%. The survey showed that women are more focused on saving for their children’s education than in saving for their old age or untimely death.

Life insurance ownership was lower at 59% for women, compared to 68% for men, said the survey. A large number of Indians fear that future medical expenditure might wipe out all their family’s savings. As high as 50% of urban Indians fear their life will be severely impacted with the death of the breadwinner. And more than a third (36%) of urban Indians feel their savings would last less than a year in case of critical illness or death. More than one fifth of the population also felt they would have none to support them in case of disability, critical ailments or death.

Working women must realise that if they are sharing every other responsibility in the family, they must get some part in financial planning as well. Making some smart investment calls can help them secure their lives against uncertainties that may affect their financial status. One tool that can help them kill two birds with one stone is term insurance that helps you save tax as well as stay protected. If you need more convincing on why you need a life insurance plan separate from that of your husband, here is a list of reasons:

Protection: Sharing the financial responsibilities of your family along with your spouse also means making sure that they are protected even when you are not around. Getting a life insurance cover for yourself will put your mind at peace that your loved ones, including your husband, dependent children, and elderly parents, will not have added monetary burden in case something happens to you.

Carefreeness: Controlling the funds of the family puts you on the steering wheel that drives expenses like academic fees and wedding budget accumulation. While you are hale and hearty, your kids need not worry about their big and small needs. To ensure that this blitheness continues even after you’re gone, you must buy a term insurance plan that gives out claims as a lump sum and/or as monthly payouts.

Cover for critical illness: With rising medical expenses today, a critical illness can jostle up a family’s finances big time. Hefty medical bills add to the already traumatic experience that you and your family would be going through in such a case. Choose a term plan that includes a critical illness cover as a rider or and inbuilt feature in the base plan. On diagnosis of covered critical illness, all future premiums will be waived off and the policy continues & in case of demise from a critical illness, your family gets the respective sum assured as per the policy agreement, which can help your partner deal with future expenses of dependent children.

These reasons justify the need of term plans for women. They form an important part of any healthy financial portfolio as they are instruments for future safety and economical coverage for your dependent family members. The benefits are not just limited to your family - they let you save tax under the section 80C of the Indian Income Tax Act, come at very economical premium rates and many insurers today offer term insurance coverage with a return-of-premium option. This option entitles the policy subscriber to benefits in the shape of premiums paid towards the policy, after the maturity of the policy term.

If you’re convinced about the importance of term insurance for working women, the next step is to opt for one. Right now, with most insurance companies offering online services, buying one has become simple and easy - just a matter of a few clicks. One such term plan is HDFC Life Click 2 Protect 3D Plus - that offers comprehensive security at an affordable price & gives a special premium rates for female lives. It also comes with benefits such as Life Stage Protection feature to increase insurance cover on certain key milestones without medicals, Premium Waiver Benefit, and Tax Benefits as per prevailing tax laws. This award-winning term plan had also achieved a 99.03%^ Claim Settlement Ratio for FY 2018-19, displaying its commitment toward making more Indians buy insurance.