Life Insurance Plans for Women

• 17th May 2021
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​Life insurance offers protection against risks to life. And both men and women are prone to risk. In fact, as a woman, you are in more danger than their counterparts. Even though you are not the primary breadwinner of the house, you perform several important duties for the house. Hence, your life also needs protection against life’s uncertainties. The most effective way to secure your life is to invest in life insurance for yourself, one that is separate from your spouse’s life insurance policy.

What is the need for life insurance for women?

Here are some reasons why you should invest in a life insurance policy:

• Peace of mind knowing that your family is secure against uncertainties: As a woman, you worry about the financial and physical well-being of your family. Your life insurance plan can monetarily secure the future of your family, including your children. With your life insurance policy, you can be assured that your kids and dependent parents have a safety net during difficult times.
• Safety asset for unfortunate times, causing a loss of income: Your life insurance policy will not only cover your family in case of your absence, but it will also be your reliable asset in case you suffer from permanent disability, financial emergency, or a sudden loss of income. You can use the funds from your policy to cover your medical expenses, as well as sustain your family’s lifestyle.
• Long-term and cost-effective wealth creation for the future: You can also use your life insurance policy as a saving tool to build wealth in the long-run. The sum assured can be aligned with the achievement of specific financial goals like a child’s education, a child’s marriage, etc. Moreover, the earlier you invest in a life insurance plan, the lower your premiums will be, owing to your good health and young age. Also, women enjoy lower premiums than men.
• An emergency fund for your family: You can also leverage your insurance policy to act as an emergency fund for your family. It is important to secure your family’s needs in your absence, which mainly includes medical emergencies. Given the rising costs of medical facilities, you must invest in a sound life insurance plan that your family can benefit from.
• Legacy for your children: Your children are your life, and you might want to leave a legacy after you are gone. In this regard, a life insurance plan can work best as a legacy asset. The term of such plans can extend up to 100 years, allowing you to stay secure when you are alive and leave a legacy for your children in your absence.

How much coverage do women need?

You can use the following pointers to ascertain how much insurance cover would you require:

• Your current annual income, if any. Experts recommend having ten times your income as your life insurance sum assured.
• Your financial goals, such as a child’s marriage, a child’s education, etc. If you have high financial goals, you would need a higher sum assured.
• Your age and needs at different life stages. The older you are, the more life insurance you will need, owing to increasing responsibilities and deteriorating health.
• The number of dependents and standard of living. If you have more dependents, you will need a greater sum assured to maintain their standard of living.

In a world where men and women are competing on equal grounds, women should secure their lives with a suitable life insurance plan from trusted companies like Kotak Life.

- A Consumer Education Initiative series by Kotak Life