Hyderabad: Life insurance takes primacy in financial planning. Every earning member should avail of life insurance cover for an adequate amount to provide financial security to his/her dependents. In this, there is should be no discrimination between men and women. In reality, women show the least interest in taking insurance policies. The main reason for this is the misconception that having insurance for one person in the family is enough. In the face of changing financial situations, there is a need to have insurance for both the couple in a family.
For low premium...
Insurance companies charge a tad lower premium for insurance policies offered to women. The life expectancy of women is higher than that of men. It is for this reason that insurance companies levy different premiums for men's and women's policies. Availing of a term policy will ensure more protection at a lower premium. If you take an insurance policy at a young age, you will get a policy with a lower premium. It is well-known that the premium rises proportionately to age. Life insurance policies are a must to financially support their family members in case of any untoward incident. Not to mention the role of women in family management. They become crucial in the economic development of the family. That is why, whether they are working, doing business, or managing the house as a housemaker, they need to be protected with insurance cover.
As an investment...
It is a well-known habit of Indian women to save small amounts and use them when needed. Insurance policies are not only meant for protection, but also for savings and investments. Unit-based insurance policies (ULIP), traditional endowment and money-back policies can also be pondered over. Besides insurance, ULIPs are also useful for investors. They also provide better returns compared to conventional policies. Such policies will enable you to save a good amount of money in the long run and help you achieve financial freedom. It is a misconception to offer insurance only to those who earn by doing jobs and business. Single women and housewives can also take the insurance policy.
For legal heirs...
Women are good at managing financial affairs and they always think of leaving something behind for their heirs. Hence, such women need to avail themselves of whole-life policies. In addition to being useful for wealth creation in the long run, they also help in passing on some assets to the next generation. It is important for single mothers to choose such a policy. With the amount that comes after the end of the policy period, it can ensure a stable income for children, along with covering their present or future expenses.
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Earning members among women should prepare their financial plans separately while contributing their share to their family income by earmarking some amount for investments. When picking insurance policies, the decision should be made on the basis of long-term wealth creation, good returns and tax benefits. For this, savings-based policies should be considered. Single women should focus on policies that provide savings and tax benefits, along with stable returns after maturity.
Care should be taken to ensure that the insurance policy is adequate for the number of loans and children's responsibilities. Personal needs, health conditions and financial goals are key in determining the policy amount. Pick an insurance policy from a company with good payment history, along with a policy with the appropriate amount and a low premium, says Anup Seth, Chief Distribution Officer, Edelwise Tokyo Life Insurance.
