Term insurance for women
Term insurance provides financial security by offering your loved ones a payout in case of an unfortunate event during the policy term. Considering the specific needs of women, such as coverage for critical illnesses6 like breast and cervical cancer, term insurance can be a necessary ally. It can offer you peace of mind and financial protection.
If you have not yet considered the possibility of purchasing term insurance for women, now is the time to think about it.
What is Term Insurance for Women?
Term insurance for women is similar to traditional term insurance. It offers a predetermined sum assured in the case of the policyholder’s demise during the policy term. Term insurance is known for its affordability and can offer a high sum assured at a low premium. It can be even lower for women as women have a higher life expectancy^. Women also have a lower risk of contracting some health issues, such as heart attacks, which are more common in men.
This makes term life insurance for women a cost-effective way for women to secure their loved ones.
Reasons Why Women Need Term Insurance
Below are some reasons why women need term insurance:
Financial security for the family
Term insurance for women offers financial security to your family members and ensures your loved ones have adequate financial backing in your absence. The insurance payout can substitute your income and help your family live a stable life.
Affordable Premiums
Term insurance is a basic insurance plan. Hence, it offers a high sum assured at a comparatively lower premium. Term insurance for women can be even more affordable, as women pose a lower risk to insurance companies due to their high life expectancies^.
Cover against critical illnesses6
Apart from the basic life cover+, term insurance also provides additional benefits. You can add the critical illness benefit6 to your plan and be financially secure against a number of critical illnesses6, such as breast and cervical cancer, heart issues, kidney disorders and more.
Features of Term Insurance Plans for Women
Below are some features of term insurance for women:
Lower premiums
The premium for a term insurance plan for women is much lower compared to men. The plan’s affordability is one of its greatest appeals. Moreover, you can save more money by purchasing the plan at a young age. The younger you are, the lower would be the premium.
Cover against Women-specific illnesses
The plan offers the option to add a critical illness benefit6 that provides financial coverage against women-specific illnesses like cervical cancer, breast cancer and others. It also provides financial protection against other critical illnesses6 like stroke, kidney failure and others.
Tax* benefits
The premium paid for a term insurance plan can be used to lower your taxable income for the year. You can claim a deduction of up to ₹ 1.5 lakh per annum under Section 80C of The Income Tax Act, 1961. Additionally, the proceeds received are also exempt from tax under Section 10(10D) of the Income Tax Act, 1961.
Childcare and Education Coverage
Term insurance ensures financial security for your child’s future. In case of an unfortunate event, the term insurance payout can help cover the financial needs of your children, including healthcare and education, offering a safety net for their well-being and future development.
How to Choose the Best Term Insurance Plan for Women
Below are some factors that can help you choose the best term life insurance for women:-
Claim Settlement Ratio
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Solvency Ratio
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Riders & Add-on Benefits
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Premium Rates
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Premium Payment options
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Life Cover+
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Policy Term
Term Insurance for Women FAQs
What are the different types of term Insurance for females?
Term insurance for women is available in different types, including return of premium plans, basic term plans and whole-life term plans.
What is the maximum age limit to buy term plans for females?
The maximum age limit to purchase term life insurance for women is up to 65 years. However, it is beneficial to buy it at a younger age.
Why is term insurance for women more affordable?
Term insurance for women is more affordable due to their longer life expectancy^, posing lower risk for insurers and resulting in favourable premium rates.
Can I add my partner to my existing term insurance plan?
Yes, you can add a spouse and up to two children to your existing term insurance plan. Term insurance plans are flexible and allow you to accommodate your evolving needs. You can tailor your term plan coverage to meet the changing dynamics and needs of your family over time.
Can I change my coverage amount during the term of the policy?
Yes, you can change the sum assured as per your evolving needs. Women normally use this option when they get married or have children.
How much term insurance coverage do women need?
Determining the ideal term insurance coverage for women is subjective, and there is no fixed figure that can suffice for all women. The ideal sum assured depends on multiple factors like your income, lifestyle, loans and the future needs of your family members. You must also account for inflation. The calculation can vary based on individual circumstances.
What are the tax* benefits of purchasing term insurance for women?
The premium paid can lower taxable income by offering you a deduction of up to ₹1.5 lakh per annum under Section 80C. Moreover, the proceeds received are exempt from tax under Section 10(10D) of The Income Tax Act, 1961.
Can a homemaker apply for term insurance?
Yes, a homemaker can apply for term insurance. The loss of a homemaker can cause immeasurable loss to a family. While a homemaker may not have an income in the traditional sense, her contributions to the household, such as childcare, managing the home and providing emotional support, are invaluable. Term insurance can provide the family with the necessary financial support in case of an unfortunate event.
Why should I buy term insurance for my non-working partner?
Buying term insurance for your non-working partner is essential as it provides financial protection to your family in case of their untimely demise. While a non-working partner may not contribute financially, their role in managing the household and supporting the family is irreplaceable. Term insurance ensures that, in their absence, the family has a financial safety net to cover expenses, debts and other financial obligations.
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