Give your Life Wings to Fly: Why Term Insurance is Critical for Women

Women-Empowerment“I alone cannot change the world, but I can caste a stone across the waters to create many ripples.” – Mother Teresa

In India, the role of a woman in society has significantly changed over the last few decades. Taking into due consideration the contribution being made by women to each and every aspect of life, it can be certainly contended that women today are no less indispensable to the society than men. Women are significantly the key to sustainable development and quality of life in the family and with their unmatched potential, they have proven that they are capable to drive the society as well by having their influence on all areas, unconditionally.

Why Women in India are Under-Insured?

However, there is a flip side to the story! When it comes to protecting themselves, women in India considerably lack behind other developing nations. As per many surveys, while most of the women are confident enough in managing their day-to-day budgeting, they are not too comfortable discussing money matters with the family. Talking about numbers, the majority of working Indian women spend over 40% of their earnings on household expenses, while the men just spend 28% of the income on the same.

According to the latest annual report by the Insurance Regulatory and Development Authority of India (IRDAI), women accounted for just 32% of the total individual life insurance policies bought in India in the financial year 2017-18. Of the total 28.2 million individual life insurance policies issued in 2017-18, only 9 million were bought by women while the share of men was 19.1 million.

Making Investment in the Right Products

Most women in India prefer investing their money in savings and investment products rather than stable life insurance plans such as term plans as compared to men. At the same time, there is a great misconception amongst the people that the income from the man is more significant and needs to be protected. This is the reason why investment in savings and investment-oriented plans is dominated by women.

It is very important that women in India realise and understand how important their contribution is to the family as well as society. No matter you are a full-time worker or a home-maker, the value you provide to your household is always precious. And in today’s time, it is important to put a monetary value on this input and protect your contribution to your family in times of need. As per industry experts, a woman must take cognizance of her importance and opt for solutions that offer protection against life risks.

Importance of Term Insurance for Women

It is time women start thinking of life insurance as a safety net for the family and dependents as there are numerous types of life insurance plans such as Term Insurance available in the market. All these plans aim at protecting either your income or your family in case of an emergency. Looking at the current state of lifestyle, it is quite easy for one to get diagnosed with a serious illness, receive a sudden injury, or even die. Your life insurance cover can protect you against all these scenarios as should your family lose your income, their lifestyle stays protected regardless.

Options to Look-out for

For women planning to buy life insurance, there are two options available. While working women can buy individual term insurance, house-makers can buy joint term cover along with their spouse. Under an individual life insurance policy, the beneficiaries of the insured are paid out the total sum assured in case of death of the policyholder within the policy term. However, under a joint life insurance policy, two individuals are covered and the total sum assured is paid out if any of the one individuals dies within the policy term.

Below are price comparisons of Term Insurance offered by 4 prominent insurers for a 30-year-old female non-smoker residing in a metro city. The total sum assured is 50 Lakh.

Company Plan Name Cover Up To Annual Premium (Rs.)
ICICI Prudential Life Insurance iProtect Smart 60 years 6450
HDFC Life 3D Plus Life Option 60 years 6435
Max Life Insurance Online Term Plan Plus 60 years 4484
AEGON Life iTerm 60 years 4502

*Source: www.policybazaar.com

Sum Insured: 50 Lakh, Male: 35 Years, non-smoking, Coverage: 60 Years, Female: 33 Years, non-working, non-smoking.

Insurance Company Plan Name Sum Insured for Spouse Life Assured Premium Joint Life Premium Total Premium
PNB MetLife Mera Term Plan- Full Lump Sum 25 Lakh 6608 3277 9885
Edelweiss Tokio Life Zindagi Plus Term Insurance Plan 25 Lakh 4998 31 5029
Aegon Life Insurance iTerm 25 Lakh 5145 3010 8155
Aditya Birla Capital ABSLI DigiShield Plan 30 Lakh 7458# 3787 11245

*Source: www.policybazaar.com

#Sum Insured for Aditya Birla is 60 Lakh

(Views expressed in this article are a personal opinion of Santosh Agarwal, Chief Business Officer- Life Insurance, Policybazaar.com)

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