Many families depend on women as their primary earners or significant contributors in terms of household income. Even if you, as a woman, are not the only breadwinner of the family, your earnings contribute a lot to maintaining the quality of life for your dependents. This heightens the importance of having a term insurance policy that can provide financial security for your loved ones in case you are not around. Continue reading to learn why term insurance is essential for women and how it can protect your family's future.
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Term insurance is a crucial financial tool for everyone, regardless of gender. However, women, in particular, have specific reasons to consider it:
Women, whether unmarried or married, happen to have dependents. Term insurance replaces the untimely death with financial support so that dependents are not left in financial distress.
In cases where the woman is a primary earner or significantly contributes to household earnings, term insurance would replace lost income to sustain the family's living standard and meet ongoing expenses.
Women may have personal debts, such as student loans, car loans, or mortgages. In such cases, term insurance will cover their debts and prevent them from burdening their family members.
Long-term financial goals for women might include funding their children's education, saving for retirement, and more. Term insurance ensures that these long-range goals can be pursued if they are not around to contribute.
Term insurance is affordable compared to other kinds of life insurance. This makes it practical, especially for women who seek financial security but do not want the process to dent their purse strings.
Women often have special health concerns and could be exposed to higher medical expenses throughout their lifetime. Term insurance, in this case, provides a cushion that covers healthcare expenses and ensures continuity in care.
In today's world, when living expenses and medical treatment costs go up, one may feel burdened by financial stress. Term insurance offers a valuable sense of security, allowing women to focus on their health and well-being while ensuring their loved ones are financially protected in their absence.
Term insurance also brings notable tax advantages. Premiums paid are eligible for deductions under Section 80C of the Income Tax Act. Moreover, the death benefit received by beneficiaries is tax-free under Section 10(10D), making it a financially savvy choice.
The contribution of women in growing the country's economy is undeniable, considering the percentage of working women has increased over the past years. This leads to their increasing participation in purchasing life insurance policies.
Noticeably, women’s participation in life insurance increased to 34.20% in 2022-23. Such studies clearly show that several term insurance providers in India offer adequate life insurance coverage that caters to women's requirements and suitable product solutions specifically meant to meet women’s needs.
Let’s understand it better with a table given below, featuring the states from where the participation of women was the highest:
| Top 5 States/ Union Territories | Women’s Share to Total Policies in the State (in %) |
| Meghalaya | 41.81 |
| Sikkim | 42.60 |
| Mizoram | 42.97 |
| Kerala | 43.96 |
| Karnataka | 44.23 |
The following table showcases the states from where the participation of women in life insurance was the lowest:
| Bottom 5 States/ Union Territories | Women’s Share to Total Policies in the State (in %) |
| Ladakh | 23.10 |
| Haryana | 27.16 |
| Jammu & Kashmir | 28.07 |
| Uttar Pradesh | 29.53 |
| Gujarat | 29.59 |
Choosing the best term insurance for women requires paying attention to a few special factors to ensure the policy aligns with personal and financial goals. To select a suitable plan, carefully consider the following factors.
To choose the best term insurance plan, you should consider if the policy you are applying for has the following features:
ACKO Life Flexi Term Plan is a modern, highly flexible, and customer-centric solution for long-term financial protection. This unique plan stands out in the market due to several key differentiators.
This unique plan allows seamless modifications to the Coverage Amount (Sum Assured) and Policy Duration. This flexibility means that you can increase or decrease your coverage based on your evolving life circumstances, such as marriage, buying a house, or having children.
If you increase your coverage later (due to inflation or life changes), the premium rates for the added coverage as per the future age will still be based on the year your policy was first issued. This feature helps you save on future premiums, keeping costs manageable even as your coverage needs grow.
ACKO offers a fully digital policy management system. You can easily make any policy adjustments (endorsements) such as:
To sum it up, the importance of term insurance for women is undeniable. Whether you're a homemaker or a working professional, you have a responsibility to ensure the well-being of your dependents. A term insurance policy is a smart step to secure your family’s financial future if something happens to you. Thoroughly evaluate your needs and budget to find the best term insurance plan.
Given below are some of the commonly asked questions about term insurance for women:
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.
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Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
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