Term Insurance for Working Women

What is Term Life Insurance for Working Women?
 

Designed to meet the needs of financial security, term life insurance for working women^[1] is the purest and simplest form of insurance. Paying the death benefit in the event of the life assured’s demise within the policy term, these plans act as a monetary backup for the family, helping them cope with the situation.
 

Why should working women consider a term plan?
 

Working women play a financial role in their family. Hence, their untimely demise is not just an emotional loss but loss of income too. Here a term plan for working women may help in substituting that monetary loss through the payout of a lump sum or periodical death benefit to the nominee. This financial backup can support the family to maintain the existing lifestyle, pay off debts if any, and fulfil the desired goals of life. A working woman may consider investing in a term plan to create this financial security layer if she is the sole breadwinner for the family or has dependent parents, siblings, or children.

What are the features of term life insurance for working women?
 

A term insurance for employed women has certain features^[1] fitting their requirements. These are as follows:
 

Flexible sum assured:
 

Some term life insurances offer the flexibility of adjusting the sum assured as per the evolving needs of life. Suppose someone plans to marry in the near future, repay an existing debt, or they are on a path of steady income growth. The flexibility of changing the sum assured can help them increase or reduce the coverage accordingly. These working women term insurance plans may help them adjust the sum assured according to the changing needs, keeping it aligned to their affordability.
 

Critical illness coverage:
 

The  critical illness rider in a term plan, if opted, provides additional coverage towards certain serious diseases subject to the provisions of the rider.
 

Riders for accidental death and disability:
 

Term insurances come with an optional rider for accidental death and disability that come with a nominal add on to the coverage amount. This enhanced financial security may bring mental peace to  working women as it not only covers accidental death but also, provides monetary support if she loses her ability to work due to an accident.
 

Tax benefits:
 

For working women, saving on taxes is a prime concern. With tax benefits against annual premium payments subject to section 80C of the Income Tax Act 1961 (in case of old tax regime), term insurances may be a worthy choice for working ladies.
 

Things to consider before buying term insurance for working women
 

Term insurances for working women may seem like an easy deal to financially safeguard the loved ones. But before purchasing one, there are certain crucial aspects to consider. Here’s the list.
 

Premium payment options^[2]:
 

Insurance companies offer term plans to working women with different premium payment options: a) single pay, where all the premiums are paid in  one go; b) limited pay, where the premium payment term is shorter than the policy term; and c) regular pay, where premiums are to be paid throughout the policy term in an annual, half-yearly, quarterly, or monthly schedule. To ensure affordable protection through term insurance, a working woman may focus on her income and affordability and choose the premium payment option accordingly.
 

Claim settlement ratio^[3]:
 

The ability of an insurance company to settle death claims is denoted by the claim settlement ratio, which is the percentage of settled claims against total claims in a year. A careful check of the ratio for the available term plan options may help a working woman take the right pick and save her loved ones from unwanted hassles in the event of the unforeseen.
 

Coverage amount:
 

Calculating the coverage needed is a crucial step before buying term insurance for working women. To create a substantial monetary backup for the dependents in her absence, a working woman may identify her life goals and liabilities as well as the monetary requirement for the family’s current lifestyle and choose a sum assured that would cover all of them.
 

How to buy term insurance for employed women?
 

When it comes to term insurance, options are aplenty, varying in features, benefits, and structure of the plan. Thorough research may help working women make the right choice based on their requirements. Here are a few crucial points.

• A term insurance policy is supposed to take care of the financial requirements of the life assured’s family in their absence. A working woman may choose the policy tenure and coverage based on the estimated corpus that would be required in their absence to fulfil the financial needs of their family and based on her ability to pay the policy term insurance premium.
• If a working woman is a single mother, responsibilities are bigger. Creating a replacement of your financial worth in your absence, covering all possible future needs of the child, should also be taken into account while buying term insurance for working women.
• Term insurance benefits come in varied patterns, making them suitable for different needs. For example, under different plans, the death benefit can be opted for in a lump sum, in monthly instalments, or in a combination of both. For a working woman, taking the pick based on the dependent’s needs and nature of goals may be helpful.
   

Conclusion
 

A term insurance policy can be a peace of mind for a working woman. But for that, making the right choice from the available plans is  the first step.
 

FAQs
 

What should be the ideal term insurance coverage amount for a working woman?
 

The ideal term insurance coverage amount for a working woman may be an amount sufficient to let her dependents carry on with the same lifestyle, pay off debts, and fund life goals in her absence.
 

Can I increase coverage during my policy term for term insurance for working women?
 

Some insurance companies offer term plans for the policyholders’ including working women that allow increasing the coverage within the policy term.
 

Can I buy term insurance for working women if I have pre-existing health conditions?
 

Yes, you can buy term insurance for working women^[1] if you have pre-existing health conditions at a higher premium subject to policy terms and conditions.
 

How to buy a term insurance plan for working women online?
 

A term insurance plan for working women can be bought online by going to a specific insurer’s website or an aggregator platform. One may fill in the basic details, check and compare the available plans, submit relevant documents, and make the payment to complete the purchase. You must submit the completed application to the insurer for approval. Once the underwriting team reviews and approves it, you will need to pay the premium for the policy to activate your coverage. The premium should only be paid after the insurer communicates their acceptance of the proposal. Coverage will begin only once the premium has been received. No deposit or proposal fee is required along with the proposal form, except for policies issued based on a declaration of good health, where coverage begins immediately upon premium payment.
 

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