Life Insurance for Women – Are You Forgetting to Cover Your Own Life?
When it comes to finances, most people have trouble finding the right solution to their long-term financial needs and how they can save money for the future. People also have a tough time dealing with uncertainty related to their future specifically when it comes to medical expenses. These problems are ten folds worse for women.
Because of these reasons, it is important for women to invest in a good life insurance policy. Life insurance for women can be a good way in which women won’t have to worry about saving money for their future medical needs.
Why Buy the Best Term Insurance Plan for Females?
There are several reasons why one must purchase a term insurance plan for housewives or get the best life insurance policy for a woman. Some of these reasons are:
# Peace of Mind
As a woman, there are pretty good chances that you are constantly worried about everyone in your family but yourself. But what happens when you are not able to take care of your family? This sounds like a horrible scenario. However, you can get rid of this question permanently and get good peace of mind by opting for term life insurance for women.
# Cost Effective
If you have a conservative outlook and want to get suitable coverage while saving money, then that is completely possible in the case of women’s life insurance policies. Life insurance policies provide a good safety net for women against unfortunate circumstances like death, permanent disability, financial emergency, or sudden loss of income. It can also help in building a corpus for retirement or different milestones in life like a child’s education or marriage.
# Long-Term Wealth Creation
Life insurance policies also come with specific long-term goals. These goals can be savings-oriented and can help a woman accumulate long-term wealth over time. This can provide the extra financial cushion that an individual needs to tackle the uncertainties in life.
# Retirement
The best life insurance for women also comes with retirement benefits. All one needs to do to get good retirement benefits is look for a health cover policy that also provides coverage in later years when the income of the individual is low.
# Protection for Children
Whether you are a mother or you are planning to become a mother, the fact remains that you would want to protect your children at all costs. This means that you cannot leave anything up to chance. A good life insurance policy will go a long way in helping you with that.
The Types of Life Insurance Policies
Till now we have talked about the importance of life insurance policies for women. But do you know that there are even different types of life insurance policies? And if you are going to make the right decision in terms of which policy to buy, then you need to learn about the different types of life insurance policies now.
1. Term Life Insurance
Term life insurance policy is the simplest type of life insurance plan. These policies are easy to understand and quite affordable to purchase. The policy comes with death risk cover for a specific period of time. This is a pure risk cover plan that provides high coverage at low premium rates. One can also increase the cover of these policies by opting for additional features.
2. Unit Linked Plans (ULIPs)
A unit linked plan is a comprehensive combination of investment and insurance. The premium paid towards these plans is partly used as a risk cover or insurance and the other half is invested in funds. Depending on the risk appetite of an individual, one can choose to invest in different funds offered by the insurance provider.
3. Endowment Plans
An endowment plan is another type of life insurance plan. These plans are a combination of insurance and saving plans. A certain amount in these plans is kept for life cover and the rest of the amount is invested by the life insurance provider.
In the case of an endowment plan, if the life assured outlives the policy term, then a maturity benefit is offered to the insurance. Period bonuses are also paid to the insured or the nominee under the death claim.
These plans are also commonly known as traditional life insurance. The only difference is that these plans come with an investment component. The risk associated with this investment is lower in comparison to other investment products.
4. Money Back Life Insurance
Money back life insurance plan is a unique type of life insurance policy in which a percentage of the sum insured is paid back to the policyholder at periodic intervals. This is offered as a survival benefit. This policy allows the policyholder to meet her short-term financial goals.
5. Whole Life Insurance
A whole life insurance policy covers the whole life of the insured. In some cases, this cover is provided up to a total of 100 years. This is different from term insurance plans that come with pre-decided terms.
6. Child Plan
A life insurance child plan helps in building a corpus for the child’s future growth. These types of plans help in building funds for the better education of the child and his or her marriage.
Most child plans come with annual installments or one-time payout at the age of 18 years. If an unfortunate event like the insured parent passes away during the policy term happens, then the immediate payment is payable by the insurance company. In some cases, the future premiums are waived off and the policy continues till maturity.
7. Retirement Plan
A life insurance retirement plan helps in building a corpus for the retirement of an individual. This plan can help one live independently without worrying about any financial constraints. Most of these plans are provided with annual installments or one-time payout options at the age of 60 years.
These are some of the most popular life insurance policies available in the market. By now, you must have a fair idea of the kind of life insurance policy that you would want to buy. So, don’t wait anymore and find the right cover for your life.
