Women’s Day 2022: Whether she’s a professional or a stay-at-home mother running the household – a woman is a significant member of a family. Unfortunately, life insurance among women is still not very common, despite the fact that many studies indicate how women are more prone to critical illnesses. Women are also likely to go through childbirth or suffer from health consequences as a result of it. Moreover, there still exists a pay gap in many industries which makes it harder for women to cover expenses than it is for men.
Life Insurance presents itself as a vital tool for women. According to industry experts, a woman must recognise her value and choose solutions that provide protection against life dangers. A lot of women seem to be recognising this fact. Santosh Agarwal, CBO-LI, Policybazaar.com, said: “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.”
Agarwal further said: “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.”
In the year 2021, out of the 4,000-5,000 women customers coming onto Policybazaar website, 48 per cent invested in a term life cover with a sum assured of Rs 1 crore and above, while the other 30 per cent invested in a cover of Rs 50 lakh and above. The share of term life policies bought by women in the age group of 30-40 years was 45 per cent in FY21-22, whereas the share for the age bracket of 41-50 years was 13 per cent.
“While choosing the term plan, one should make a right choice of the insurer, basis the claim settlement ratio, solvency ratio, market reputation, the cover amount one needs based on age, financial responsibilities, lifestyle, daily expenses, loans, etc. It is advised to buy a policy at a younger age, as more policy period would be available and women get more,” said Aatur Thakkar, co-founder, and director at Alliance Insurance Brokers.
Here are the Important Things to Consider before Buying a Term Life Insurance Policy
Get Adequate Insurance Cover
Deciding on how much cover you should get is a crucial decision and should be taken very carefully. You need to have adequate coverage to cover all your liabilities (like home loans), living expenses of your family for at least 30 years, and future goals like a child’s marriage, their education, etc.
Deciding on the policy period is the next important choice. If you are purchasing a policy at a young age, then it is advisable to go for the maximum available policy period to get a relatively lower premium.
It is advisable not to avoid taking medical tests. There are two ways to go about it, some companies put buyers through extensive medical tests and others merely ask the buyer to give a declaration of good health. Going for a medical test is beneficial as the premiums may be lower if the test shows the buyer is in good health. Importantly, if a buyer goes through a medical test the onus of detecting a pre-existing disease shifts to the insurance company.
Add Riders to Term Insurance
Term insurance Riders is an additional benefit in a term insurance policy that gives you supplementary coverage. Such riders give additional benefits apart from the core life insurance policy, which pays only in case of the death of the policyholder. Few riders one can look at are critical illness riders, accidental death benefit rider, waiver of premium rider, etc.
Choose a Suitable Pay-Out Option
The premium for your insurance policy depends on the pay-out option you choose. A lump sum pay-out or a regular monthly income pay-out (if available in your plan) can be chosen. The choice should be made as per the requirement and feasibility as the premium will vary depending on the pay-out option.