How Life Insurance Empowers the Financial Lives of Women

The last few decades have seen Indian women making their mark in various fields. Armed with the right resources and a firm resolution, they have proved that they can aim high and achieve success in industries such as aviation, entertainment, business, sports, tech, finance, and so on. The woman of today is also waking up to the benefits of efficient financial planning, especially when it comes to insuring their lives. There has been a slow but steady rise in the number of women who buy life insurance in the past couple of years. There are a variety of products that life insurance offers, which can empower the financial lives of women     . 

How does life insurance work? 

Whether you are a homemaker or a working woman, you would know how important it is to ensure that your loved ones live a life of dignity, even in your absence. You can ensure this by opting for a life insurance plan which provides a hefty sum assured to your chosen beneficiaries if you pass away under conditions mentioned in the policy. To get the desired sum assured, you have to pay premiums for the policy. If you have doubts regarding the premiums you have to pay, it is recommended to use a life insurance premium calculator

Why women should buy life insurance 

Let’s take a look at the financial benefits of life insurance for women: 

Tax-savings via deductions and exemptions 

As per Section 80C of the Income Tax Act, you can claim maximum tax deductions up to Rs 1.5 lakh against the premium you pay towards your life plan. This allows you to cut down on your tax liability while securing the future of your loved ones. Not only that, even the death benefit pay-out, the surrender value pay-out, and the maturity proceeds are also exempted from taxation under prevailing tax laws. 

Note that these tax benefits are dependent on the kind of life insurance plan you have and are subject to changes in tax laws. 

Lower premiums 

Generally, it has been observed that women tend to have lower premiums than men. The difference is because women have lesser lifestyle-related risks and have a high chance of living longer than men. That is why a life insurance premium calculator also considers gender as a major variable in estimating your premium. Buying life insurance at a younger age guarantees even lower premiums. 

Investment returns and gains 

Insurance plans such as ULIPs give the chance to invest in market-related instruments and gain plausible returns whilst also offering insurance cover. Though the world of investing has been traditionally male-dominated, women have been entering the market and making their mark      too. If you are a woman interested in investing in equity funds, then a ULIP plan is the best way to start. You can invest in the asset classes you prefer as per your risk appetite. You even have the option to switch them as per your understanding of market fluctuations. This is one of the best benefits of life insurance policies of this type. 

Financial well-being during retirement/elder age 

Certain life insurance policies, such as term insurance, offer the return to premium feature, which allows you to receive the total premium paid if you have outlived the policy duration. This maturity benefit pay-out can help you achieve your financial goals during your retirement. So, whether you want to buy a grand piano or travel the world as a solo woman when you reach senior age, the financial odds will be in your favour. 

Plus, you can also take riders such as critical illness benefit riders to protect your finances against the increased susceptibility to life-threatening illnesses during the later age. 

A legacy of financial independence

It is vital for women to understand the importance of financial independence in today’s world. When you buy life insurance, you are not only taking a step ahead in making yourself financially self-reliant, but are also ensuring that this self-reliance goes a long way. 

If you are a single mother, you would no longer have to worry whether your daughter will be able to pursue her dream of studying at the best university in the country in your absence. The life corpus you build will ensure that she does. 

We hope this article helps you in your financial planning. Thank you. 

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