Women have always played an integral role in society. Whether you are a housewife or a working individual, your contribution to your family can be significant. Right from looking after the household chores to splitting up the financial duties with your partner, your role in the family can be as essential as your husband.
As a woman, your survival chances can be relatively higher than your partner. According to a survey, women typically live 5% longer than men. Since your lifespan can be higher than your husband, you might require additional financial coverage that can cover your whole life. Although there are various insurance plans, such as endowment plans, money-back policies, and whole-life plans, you should choose a term policy for your long-term security. Term insurance is a plan that can offer death benefits as well as survival benefits to help you survive financially. While choosing a term plan, you might come across the three main types of term policies:
- Traditional term plan
If you are looking forward to protecting the financial security of your family, buying a traditional plan that only offers death benefits can be the right choice.
- Term plan with return of premium
As the name suggests, your insurer can return the whole premium amount once your term policy reaches the maturity period.
- Smart term life insurance
A smart term plan can be a combination of death benefits as well as survival benefits. While the death benefits can cover your financial dependents, the survival benefits can let you lead a comfortable retirement period.
Typically, you should choose a term plan that can match your family needs. With the right term plan, you can financially secure yours and your family’s future tightly against unfortunate events in the absence of your husband. Therefore, let’s take a look below to understand why term insurance is necessary for women as much as it is for men:
- Acts as a financial backup
A term plan can be a must-have for you, whether you are married, un-married, widow, or a divorcee. While a married woman can cover her spouse and children, a single woman can look after the financial requirements of her parents. While your family can cherish your presence, they might suffer financially and emotionally in your absence. With a term plan, your family can receive a financial backup during an unfortunate event, such as loss of income, critical illness, physical disability, and so on in your absence. Moreover, a term policy can let your nominee maintain their current lifestyle as well as fulfil their financial goals after your demise.
- Allows to clear your partner’s past liabilities
There can be times when your husband might have borrowed a loan from the market to fulfil the financial requirements of the family. For instance, he might have taken a home loan to buy a new house. In case your partner passes away during the loan repayment period, the financial burden of clearing the debts can fall on you. If you have term insurance under such a scenario, you can clear the past liabilities of your partner without the worries of financial constraints.
In a nutshell, a woman can require equal financial coverage as men. Since term insurance can be availed by you as well, you should look for the right type of policy that can match your evolving needs. Moreover, see to it that you calculate the premium amount before you purchase a term policy. In case you feel that you are unable to manage the financial responsibilities of the whole family alone, avail a waiver of premium rider that can waive the premium off while your family can continue to receive the term insurance benefits.