Stay-At-Home Moms Can Also Avail of Life Insurance for Women
Gender divisions are becoming increasingly blurred in society today. Women are acquiring financial independence and freedom as they thrive in many fields. Women nowadays have begun to take on the role of sole earner in a household. Given the current epidemic, the majority of earning mothers are now working from home.
They improve a family’s level of life by sharing the load of living expenses, loans, and children’s schooling fees. Furthermore, they financially assist their retired parents. As a result, the earnings and other critical contributions of women must be preserved. Life insurance helps to preserve your household’s financial security and maintain stability in the event of an unexpected incident. This blog will provide a guide on how Stay-At-Home Moms Can Also avail themselves of Life insurance.
The Significance of Purchasing Life Insurance Plan for Women
Females make up around 48% of the population in India. Despite this, women acquired just 36% of all life insurance plans issued in 2019. Though there is currently a gender gap in the proportion of male and female insurance consumers, there is a modest but considerable shift in this field due to increased exposure and understanding of life insurance plans for women. As a result, it is critical to comprehend the significance of self-insurance.
Purchasing life insurance is critical if you want to secure your family members’ financial futures and invest in your long-term ambitions. Furthermore, research has demonstrated that women have a lengthier average lifespan than men. This implies you’ll need to be financially stable for a longer length of time. This is precisely what female insurance plans are designed to provide!
What Kind of Life Insurance Should You Purchase?
There are primarily two forms of life insurance namely,
- Term life insurance plans
- Permanent life insurance plans
A term life insurance plan offers coverage for a set length of time which usually ranges from 10-30 years. Permanent life insurance plans offer coverage for the rest of one’s life. The best life insurance policy for a woman is usually determined by her family’s financial status and personal objectives.
In the case of Term Life Insurance Plans
Stay-at-home mothers should purchase term life insurance because it is an economical method for families to obtain the security they want. However, the policy should last until your children have completed high school or graduated from college. This enables your children to have financial stability if something happens to you while they’re still young.
In the case of Permanent Life Insurance Plans
A permanent life insurance plan costs significantly more than a term life insurance plan. If you have a high-income stream and plan to cover financial aspects such as planning for retirement, keeping an emergency fund, and saving for higher education for children in addition to regular life insurance benefits, buying a permanent life insurance plan makes sense.
The best life insurance for women is the one that allows them to provide financial security to their families while saving for their financial goals. A permanent life insurance plan has the advantage of accumulating monetary value. It provides you money that you’ll be able to utilize later down the line if the insurance accumulates enough cash value.
Benefits of Women’s Life Insurance Policies
Following are the benefits of life insurance for housewives:
1. Security for Family
Because of your strong caring instincts, the safety of your family members is your priority. By purchasing life insurance, you may safeguard the financial stability of your loved ones in the event of an untimely death. It is beneficial for providing peace of mind, maintaining excellent health, and thus, enhancing productivity.
2. Lower premium amounts
2019’s National Health Profile revealed the life expectancy of women in India is 70.2 years which is much higher than that of men which is around 67.4 years. Because the life insurance plan rates are determined by the risk levels of the policyholder, and females have a reduced risk of mortality, most likely, you will be paying cheaper premiums for your life insurance policies. However, we suggest you contact your insurer for further details.
3. Building funds
Women are prone to rigorously planning their money to meet their financial goals, and life insurance policies may be excellent investment vehicles. They not only assist in the accumulation of money but also in the generation of higher returns while providing insurance coverage.
4. Protection against illness
Aside from the serious medical disorders that affect a significant number of individuals, such as heart failure and renal impairment, mothers are particularly at risk of specific types of cancer, such as breast or cervical cancer, among many others. Treatments for such conditions are not only time-consuming and distressing, but they may also be financially draining for you and your household. A life insurance plan for women that includes critical illness coverage can help you stay psychologically and financially geared to face these serious medical conditions.
5. Tax Benefits
Premiums paid for a life insurance plan are eligible for a tax deduction of up to 1,50,000 INR under section 80C. Section 10(10D) provides a tax exemption on maturity benefits of life insurance plans provided the annual premium amount is one-tenth or lower than the total insured amount.
6. Cash value advantages
Major life insurance plans accumulate cash value, which is used to offer loans. This might offer you cash for unforeseen events.
How to buy Life Insurance for Housewives?
Following are the steps of acquiring life insurance plans:
1. Determine the amount of life insurance you require
When determining the amount of life insurance you require, income is frequently a major factor. This is because you want to have a death payout that can match your wage for a set length of time. As a stay-at-home mom, you can ask yourself the following questions to arrive at a set coverage amount:
- What monetary support will be accessible to your children in the event of your death?
- What monetary requirements will your children have following your death?
2. Determine which sort of life insurance is appropriate for you
If you just need coverage for a short period or have a restricted income, term insurance with cheaper rates may be a suitable choice. If, on the other hand, you need the coverage for the rest of your life and wish to save, permanent insurance coverage may be a wiser preference.
3. Add necessary add-ons
Add-ons are a great way to increase coverage of your basic plan by paying a slightly higher premium amount. It is advisable to check available add-ons and include preferable ones to your plans. Waiver of premiums and critical illness cover are some of the commonly added riders.
4. Compare products
There are several methods to save cash when purchasing female insurance plans, but they may not always include buying one with a lower premium right away. However, because life insurance is a highly competitive industry, rates and coverage of the same product can vary dramatically between firms. Read and understand the policy brochure before buying.
5. Decide when to pay premiums
In most circumstances, paying a premium annually is preferable to pay in installments because there is typically a reasonably supplementary fee for paying smaller portions more frequently. It is, however, dependent on your existing financial situation.
6. Inform your beneficiaries
Once the insurance is issued, notify the beneficiaries about the business that provided it, where they can obtain a printed copy of the document and any particular instructions for how you wish them to use the death payout.
The proportion of moms who stay at home to attend to their kids has increased significantly in recent years. If you are a stay-at-home mother, you may be wondering if you truly need life insurance. Usually, life insurance is purchased to substitute a paycheck, and you don’t really have one. However, your contribution is valuable. Some insurance companies provide female insurance to stay-at-home mothers who do not have a regular salary to declare. Your spouse and children would undoubtedly suffer financial consequences as a result of your death, and a ladies insurance plan can provide some security for them.