Today, women are not less than anyone. She is getting her iron in every field today. Women are making financial decisions to achieve financial independence. If women truly want financial freedom, then life insurance is very important for them. Indian insurance regulator IRDA (IRDA) says that the number of Indian women buying life insurance is increasing.
IRDA’s annual report states that women accounted for 36% of the 28.6 million life insurance policies sold in the financial year 2018-19. In the financial year 2017-18, women purchased 32% of life insurance policies. Most of the life insurance plans have been purchased by women from West Bengal, Uttar Pradesh and Maharashtra. Insurance companies will have to pay attention to this change coming in the insurance industry and create better policies for women. Life insurance schemes being purchased by women help women at various life stages like marriage, children etc.
For more and more women to cover themselves through insurance, life insurers want women to sell life insurance plans, as women can better sell life insurance to women. Insurance and life insurance are very important for women. So through this article we are going to tell you why women provide life insurance.
Why do women need life insurance?
Working women need life insurance. If you are a woman and do a job, then you need a life insurance plan more. Working women must take a life insurance plan. This is a pure risk cover. In this, you have to pay a premium based on the sum insured. If the policyholder dies within the duration of the plan, the nominee gets the sum assured, also known as the death benefit. In this plan, the policyholder does not get any benefit when he is alive. To understand the importance of a term life plan, one must first understand the value of human life (HLV). HLV is basically a person’s expected lifetime earnings. This is the total income you expect to earn from the rest of your working life. Term life insurance is a great way to transfer money to the youth. On having a term life plan, a policyholder can transfer a large fund to their loved ones. Kamakaji women can provide protection to their dependents by taking life insurance, so that their loved ones do not face any kind of trouble even if they are not there. Women require life insurance for the following reasons –
Working women share the family’s economic responsibilities with their spouse. Family members and children are dependent on the earning parent. In case of someone’s untimely death, life insurance provides cover for all these expenses.
Working women make various plans together with spouse. They bear children’s school fees and other expenses. Children’s vocational courses and education costs are very expensive. Along with this, parents also have to invest for higher education and marriage of children. Right life insurance plans such as child endowment plans help in such expenses.
Annuity plan for retirement
Women have a higher life expectancy than men, so they must invest for retirement. In this case, life insurers offer annuity plans. In annuity plan you can get regular income after making lump sum investment. The money paid in the annuity plan is invested by the life insurer and the return is paid to the annuity plan holder. There are some popular annuity schemes such as immediate annuity and deferred annuity plans.
- Immediate Annuity Plan – The scheme is availed after making a lump sum payment. In this, the annuity payment starts immediately, which is for a limited time or for a lifetime.
- Deferred Annuity Plan – These are basically pension schemes. These payouts begin after a certain date. By buying this plan you have to invest and accumulate money, this is called accumulation phase. You then take advantage of the plan in the vesting phase, that is, you are paid.
Life insurance plans help women leave a legacy for their children. If parents are not there to take care of the children, then their legacy helps them. Although the emotional loss caused by nonexistence can never be filled, financial burden can be reduced through it. That’s why women buy life insurance plans.