Nowadays, most women are becoming increasingly independent. They are no longer liabilities but assets to their families, since they contribute a fair share in their family income. Therefore, they should consider insuring themselves in order to ensure a secure future for her near and dear ones in case anything happens to her in future.
There are women who are aware of the benefits of insurance schemes but sadly some of them are completely unaware of all that insurance policies have to offer. Nobody knows what the future has in store and this is why everybody, including working women, should consider buying insurance schemes.
By far, term insurance plans are one of the simplest and cheapest plans that are currently available in the market. For those who don’t know, a term plan is an insurance plan meant to provide financial security to everyone who might be dependent on the income of the policyholder when they are no longer around. The premium to be paid is nominal, which makes it quite affordable. It offers a number of benefits and some companies provide various extra special benefits which are exclusively meant for women. Although it is a death risk plan, the benefits it has to offer are quite attractive even though there is no maturity benefit.
Benefits of Term Plan for Working Women
As we have discussed earlier, term insurance policies ensure financial security to the family of the policyholder in case they pass away unexpectedly. In the absence of the life assured, the term plan acts as financial aid to their family members. But there are a number of additional benefits which term plans offer to the policyholders. Besides, if the policyholder happens to be a woman some insurance companies offer some attractive perks too. Therefore, it’s wise to choose a term plan because of the following benefits:
- Source of Regular Income in Case of Disabilities Caused by Accidents: Accidents can never be predicted. They happen when nobody expects them to happen. What if you are left with a physical handicap forever which prevents you from going out and earning again? If the accident results in your death and you are insured, your term plan will protect the interests and needs of those who are dependent on you. If you survive but are left disabled for the rest of your life, your insurance will protect your own needs too. Some insurance companies will offer you payments on a monthly basis and you can use the money to meet your household expenses and even for your treatment.
- Critical Illness Cover: There is an option of critical illness coverage in many term plans that are provided by some insurance companies in India. In case a policyholder is diagnosed with a critical disease and that disease is listed in the terms and conditions of the policy, policyholders are entitled to a lump sum benefit.
- Special Disease Rider: Riders add to the value of a term plan. Besides, they provide maximum coverage. In fact, choosing a term plan that offers coverage against diseases like cancer is really a wise choice. In case the policyholder passes away because of the disease their family will receive the death benefit. Women are quite prone to diseases like ovarian cancer or uterine cancer and a lot of women die because of them. So, if women choose a term plan it will offer them coverage against such diseases.
- Premium Benefits: Some insurance companies offer special premium rates to women. It is not uncommon to see that the premiums are often lower for women. The main reason for this is that women are seen to have a longer life expectancy.
- Other Benefits: There are other special benefits which many term plans offer. For example: Most plans offer a lower premium for females who are non-smokers since this increases their life expectancy.
An example will make everything clear.
A woman who is a single parent buys a term plan to secure the future needs of her only daughter. Let’s assume she buys a term plan of INR 1 crore for a period of 30 years. The woman’s age is 30. She will be required to pay a yearly premium ranging from INR 6,500 to INR 10,000. Now she has opted for an accidental death benefit of INR 50 lakhs. After 5 years, in case she meets with an accident and passes away, the insurance company is supposed to pay INR 1.5 crore to her daughter.
| Age | Gender | Sum Assured | Policy Term | Annual Premium | Total Sum Received |
|---|---|---|---|---|---|
| 30 years | Female | INR 1 Crore | 30 years | INR 6,500-INR 10,000 | INR 1.5 Crore |
Even if she had not died of an accident and had survived with a handicap, she would be paid a monthly income by the insurance company.
So, considering all the benefits offered by term plans, a working woman must think about buying a term plan.
7 Term Plans for Working Women in India (2020)
There are many term plans available in the market that women may consider buying. But the choice of a good term plan is a must. However, going through the details of all the term plans and deciding one is easier said than done. So, we have curated the following table for you which presents a list of 7 term plans which working women may consider buying.
Sl. no. | Insurance Provider | Term Insurance Plan | Claim Settlement Ratio 2019-2020 | Minimum Age (years) | Tenure (years) | Maturity Age (years) | Sum Assured (INR) |
|---|---|---|---|---|---|---|---|
1 | Max Life | Max Life Smart Term Plan | 99.22% | 18 | Up to 50 | 85 | 10 lakhs |
2 | HDFC Life | HDFC Life Click 2 Protect 3D | 99.07% | 18 | Ranges between 5- 40 years (as per the client’s preference) | 85 (approx.) | 25 lakhs |
3 | Exide Life | Exide Life Elite | 98.15% | 21 | Ranges between 5-35 years (as per the client’s preference) | 70 (can be extended up to 10 years if the client opts for extension) | 50 lakhs (online mode) 2 crore (offline mode) |
4 | AEGON Life | iTerm Plus | 98.01% | 18 | - | 65 | 25 lakhs (minimum) |
5 | ICICI Prudential Life | ICICI Pru iProtect Smart | 97.8% | 18 | - | 99 | - |
6 | Future Generali | Future Generali Express | 95.28% | 18
| - | 23-85 | 25 lakhs |
7 | Edelweiss-Tokio Life | Zindagi Plus | 83.44% | - | - | - | - |
Working women may choose to buy any of the above term plans based on the financial needs of her family. They must also take into consideration the additional benefits and riders which are offered exclusively to them by the above plans.
For example:
ICICI Pru iProtect allows relaxed premium rates in case of women and provides the critical illness rider which makes a provision for diseases like cervical cancer.
Key Takeaways
Choosing a life term plan is a hard job. But while buying one, one must choose a plan which will cater to the needs of their family most effectively. Women should take into account the riders and especially the special benefits which are exclusively meant for them. Besides, the claim settlement ratio, minimum assured sum, etc. must also be taken into account. It is always advisable to contact an expert advisor to seek advice regarding such matters. In addition, a little bit of research will also help.
