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Life Insurance for Women

TeamAckoJun 13, 2024

With the rapid changes in the world, a different perception of Indian women has emerged.

Women have increased economic independence and various career choices. These enable them to contribute immensely to their families and society as well. Securing one's financial future becomes paramount in this context, and life insurance is vital to this financial planning. This article explores the importance of life insurance for women in India, shedding light on key considerations and demystifying the process.

Contents

Why do women need life insurance?
What are women-centric life insurance policies?
How does Life Insurance work for women in India
Is Life Insurance beneficial for women in India?
Financial Planning and Empowerment through Life Insurance
How to find the best life insurance plan for women
Which women should buy life insurance?
ACKO Life Flexi Term Plan: Empowering Women for Financial Security
- Why Choose ACKO Life Flexi Term Plan?
ACKO Life Flexi Term Plan Features
Wrapping up!
Frequently Asked Questions (FAQs)

Why do women need life insurance?

Life is unpredictable, so you are responsible for protecting your family's financial interests. Primary breadwinners or those contributing substantially to their families should consider life insurance as a source of financial security for their dependents. It ensures dependents will still be cared for if the policyholder dies, cushioning life against hardships.

What are women-centric life insurance policies?

Insurance providers in India recognize women's unique needs and roles, offering specialized policies that cater to their requirements. Women-centric life insurance policies often include benefits such as critical illness coverage, maternity benefits, and even coverage for specific cancers. These tailored policies aim to provide comprehensive protection, considering women's distinct health and lifestyle aspects.

How does Life Insurance work for women in India

Life insurance for women in India works in a straightforward manner.

Policy Selection: Choose a policy that aligns with your financial goals—options include term insurance for pure coverage, endowment plans for savings with insurance, and ULIPs for an investment component.

Coverage Determination: Decide on the coverage amount based on factors like income, dependents, loans, and future financial objectives.

Premium Payments: Pay regular premiums, with amounts varying based on age, health, and coverage. Payment intervals can be annual, semi-annual, or monthly.

Cash Value Accumulation (for certain policies): For policies like endowment plans and ULIPs, a portion of the premium contributes to cash value, providing savings and investment opportunities.

Policy Outcome: Benefits are paid out upon the policyholder's death or at maturity, depending on the policy type. Term insurance provides a death benefit, while endowment plans and ULIPs offer maturity benefits.

Enhance Coverage with Riders: Add riders like critical illness cover or accidental death benefits for additional protection.

Regular Policy Review: Periodically review and adjust your policy based on life events such as marriage, childbirth, or changes in financial status.

Is Life Insurance beneficial for women in India?

With women from India now assuming different roles and making valuable contributions to their family and society, it is imperative that their financial security via life insurance should not be overlooked. Given below are critical advantages indicating why life insurance is an essential asset for Indian women.

Financial Security for Dependents: Life insurance serves dependents and children in case the policyholder dies. This is especially important for women who are primary breadwinners or make significant contributions to the family income.

Customised Coverage: Many insurance providers offer women-centric policies tailored to address their specific needs. These policies often include benefits such as coverage for critical illnesses, maternity benefits, and protection against women-specific cancers. This customization ensures that women receive comprehensive coverage aligned with their unique health and lifestyle.

Wealth Creation and Savings: Life insurance is not just an expense; it can be a strategic tool for wealth creation. Investment-linked insurance plans, such as Unit-Linked Insurance Plans (ULIPs), allow women to participate in the financial markets while simultaneously securing life coverage. These plans offer the dual advantage of insurance protection and the potential for wealth accumulation.

Support for Long-Term Financial Goals: Women often have specific long-term financial goals, such as funding their children's education, buying a home, or planning for retirement. Life insurance policies, especially endowment plans, can be instrumental in achieving these goals by providing a disciplined savings approach coupled with life coverage.

Riders for Enhanced Protection: Life insurance policies come with the option to add riders or supplementary benefits. Women can enhance their coverage by opting for riders like critical illness cover, accidental death benefit, or waiver of premium. These riders provide additional protection against unforeseen circumstances, offering peace of mind to the policyholder and their family.

Tax Benefits: Life insurance policies offer tax advantages. Premiums paid towards life insurance qualify for deductions, providing a dual advantage of financial protection and tax savings. This makes life insurance an attractive component of a woman's overall financial planning strategy.

Peace of Mind: Knowing that their loved ones are financially secure in their absence brings a sense of peace and reassurance to women. Life insurance allows them to face life's uncertainties with confidence, focusing on their personal and professional pursuits without the constant worry about their family's financial well-being.

Financial Planning and Empowerment through Life Insurance

Life insurance is more than just dealing with the unpredictable; it is one of the best financial planning and wealth creation strategies. Women should purchase a life insurance policy to ensure that their family is provided for even in their absence. Additionally, life insurance can act as a savings tool, offering opportunities for wealth creation through various investment-linked plans.

How to find the best life insurance plan for women

When choosing a life insurance policy, there are several factors that women should consider. Here are a few.

Coverage Amount: Consider your family’s financial needs like educational fees, loans and day-to-day expenditure, in order to decide how much coverage will be adequate.
Policy Duration: Consider the duration of coverage based on your financial goals and the age of your dependents. Longer-term policies may offer better value over time.
Type: Choosing the most suitable type of policy is very important. This will decide what kind of benefits you or your family receives. You can choose from options like Term insurance, Whole-life insurance, Endowment plans, etc.
Riders and Add-ons: Evaluate additional riders or add-ons that can enhance your coverage, such as critical illness riders, accidental death benefit riders, or waiver of premium riders.

Which women should buy life insurance?

You must consider buying life insurance if you are a:

Working Professional: Women who are part of the workforce contribute significantly to their family's income and financial stability. Life insurance ensures that in the unfortunate event of their demise, their dependents are safeguarded from potential financial hardships, covering aspects like outstanding debts, education expenses, and daily living costs.

Stay-at-Home Mom: While stay-at-home moms may not have a conventional salary, their contributions are invaluable. From managing household tasks to providing emotional support, their role is immeasurable. Life insurance can offer financial protection to cover the cost of hiring assistance for household responsibilities in the event of their absence.

Single and Independent Woman: Single women should also prioritise life insurance. This ensures that their financial legacy is managed according to their wishes and can serve as a safety net for any dependents or charitable causes they support.

Entrepreneur and Business Owner: Women who own businesses or are entrepreneurs should consider life insurance as part of their risk management strategy. It can protect business assets, cover outstanding debts related to the business, and facilitate a smooth transition in the event of their demise.

Women with Dependent Family Members: Whether caring for ageing parents or supporting siblings, women with dependent family members should prioritise life insurance. This provides a financial cushion for their loved ones, ensuring ongoing support and care.

Divorced and Separated Woman: For women who have gone through a divorce or separation, life insurance becomes really important, especially when there are kids involved. It's like a safety blanket for your finances, making sure your children are taken care of, including their needs and education. Life insurance also helps cover any lingering financial responsibilities you might have. It's like having that extra layer of support to ensure everyone is looked after, even in challenging times.

Woman Planning for Retirement: As women age, planning for retirement becomes essential. Life insurance with a cash value component can be a valuable asset, providing additional financial security during retirement.

ACKO Life Flexi Term Plan: Empowering Women for Financial Security

At ACKO, we understand that life is a journey full of changes and uncertainties. That's why we've designed the ACKO Life Flexi Term Plan, a comprehensive and flexible insurance solution that caters to the needs of women as well. We believe in empowering women to take control of their financial future, and our term plan is a step in that direction.

Why Choose ACKO Life Flexi Term Plan?

Here are the reasons why women must opt for ACKO Life Flexi Term Plan.

Easy and Convenient: We know life can get busy, and we're here to make things easier for you. Being digital-first means you can effortlessly purchase and claim on your term insurance policy. No more paperwork or long processes—just simple, quick steps for the modern woman.

Affordable Prices: We prioritise fairness and friendliness to your wallet. Our insurance plans offer excellent coverage without breaking the bank. Stay protected and save money simultaneously—because financial security should be accessible to everyone.

Quick Claims: Our online system is designed for speedy claims processing. Your loved ones can receive the financial assistance they need without unnecessary delays, providing them with peace of mind during challenging times.

ACKO Life Flexi Term Plan Features

Here are the top features of our term plan.

Death Benefit

Your chosen sum assured will be given to your nominee as per your wishes, ensuring their financial security in the event of unforeseen circumstances.

Will Creation Services

We provide assistance in creating a will, allowing you to specify how your assets should be distributed. It's not just insurance; it's a tool to ensure your wishes are carried out precisely.

Flexi Benefit

This unique feature lets you customize your coverage as your life evolves. Here's how you can tailor your plan:

Sum Assured: Adjust annually based on your changing financial status.
Policy Term: Modify the duration of your policy as per your evolving needs.
Payment Frequency: Choose from monthly, quarterly, half-yearly, or yearly premium payment options.
Payout Options: Control how the sum assured is paid to your nominee, whether through monthly instalments or a one-time full payment.

Optional Riders

Enhance your coverage with optional riders, including:

Critical Illness Rider: Extra protection for serious illnesses, with waived future premium payments.
Accidental Death Benefit Rider: Additional financial support for accidental death.
Accidental Total Permanent Disability Rider: Financial assistance for serious accidents resulting in permanent disability, with waived future premiums.

How Women Benefit from ACKO Life Flexi Term Plan

Empowerment is at the core of our offering, and here's how women can specifically benefit:

Financial Independence: The plan allows women to take charge of their financial well-being, ensuring they have control over their coverage and its evolution.
Flexibility: ACKO understands the dynamic nature of women's lives. The flexibility of adjusting sum assured, policy term and payment frequency accommodates changing life stages and financial goals.
Comprehensive Coverage: The optional riders provide an additional layer of protection tailored to women's needs, addressing health and accident-related concerns.
Peace of Mind: Knowing that the ACKO Life Flexi Term Plan adapts to their unique requirements, women can enjoy peace of mind, focusing on their personal and professional growth.

Wrapping up!

A term plan for women isn't just insurance; it's a partner in your journey towards financial security. Empower yourself with a plan that grows with you, offering protection and peace of mind for today's empowered woman. Choose ACKO and step confidently into a future of financial strength and security.

Frequently Asked Questions (FAQs)

Here are some common questions related to Life Insurance Plans for Women in India.

Why is life insurance important for women in India?

Life insurance provides financial security to your loved ones in case of unforeseen events. For women in India, it ensures that their families are financially protected, especially considering the changing roles and responsibilities.

What’s the maximum coverage I can get for an Accidental Death Benefit rider?

As per the IRDAI, you can purchase an Accidental Death Benefit Rider with coverage up to three times (3x) the base sum assured of your life insurance policy.

What types of life insurance plans are suitable for women?

Women can opt for various life insurance plans such as term insurance, endowment plans, or unit-linked insurance plans (ULIPs). The choice depends on individual needs, financial goals, and risk tolerance.

Can married women benefit from life insurance even if they are not the primary breadwinners?

Married women, even if not the primary breadwinners, can benefit from life insurance. It provides financial security for the family in case of the unexpected loss, covering debts, children's education, and other expenses.

Are there specific life insurance plans designed for women's needs?

Some insurance companies offer plans tailored for women, addressing health-related issues like critical illnesses specific to women. It's essential to explore such options to find a plan that aligns with individual requirements.

How does life insurance benefit working women in India?

Women who work play a crucial role in supporting their family's finances. Having life insurance is like having a safety cushion for the family's financial well-being. It provides a safety net for situations like unexpected events, making sure bases are covered such as loans, the kids' education, and daily expenses.

What new options do I have for adjusting my premium?

As per the IRDAI, you have the option to decrease the premium amount or sum assured of your life plan after 3 years instead of the previous restriction of 5 years.

Is there an age limit for women to buy life insurance?

Most insurance companies make life insurance available for women from 18 to 65 years old. But it's a good idea to consider getting it when you're younger to secure lower premium rates.

Can women avail tax benefits through life insurance policies?

Yes, life insurance premiums are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the proceeds from a life insurance policy are generally tax-free under Section 10(10D).

How can women calculate the right coverage amount for their life insurance policy?

The coverage amount should consider factors like existing liabilities, future financial goals, children's education, and living expenses. Online calculators provided by insurance companies can help determine an appropriate coverage amount.

Are there any specific exclusions in life insurance policies for women?

Exclusions vary among policies, but they commonly include suicide within the first policy year and death due to pre-existing conditions. It's crucial to carefully read and understand the policy terms and conditions.

Can single women benefit from life insurance?

For single women, life insurance becomes a powerful way to build a safety net for their loved ones or work towards important financial milestones. Think of it as a smart, long-term investment and a tool for saving up for the future.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content, and before making any insurance-related decisions.