Empowering Women: Why Life Insurance is Essential in Today’s World

Life insurance is a necessity in today’s world, and this has only been exemplified further by the recent economic downturn, where financial vulnerability is a looming threat for families. More people are now looking at enhancing future financial security for their families amidst the growing uncertainty of life.

Understanding Life Insurance

What is life insurance? It equates to life coverage for an insured individual for a fixed tenure from the insurance company in return for a pre-agreed premium amount. The insurance company will pay the nominee the sum assured if the insured person passes away within the policy tenure. There are different kinds of life insurance plans available, including term plans which provide pure life coverage without maturity benefits, and other plans like endowment plans and ULIPs which have accompanying benefits for policyholders. But what needs to be examined in a broader way is the need for women to avail of life insurance.

Women are equal partners in the stability of a household, and they should be empowered with suitable coverage accordingly. Here’s looking at some of the biggest reasons why women should choose the same.

Why Women Need Life Insurance More Than Before

Women require life insurance even more in the current scenario, where various socio-economic factors, health issues, global pandemic outbreaks, and work stability are pressing issues. Here are some reasons why life coverage is non-negotiable for women.

  1. More Women Now Contribute Equally To Household Incomes- Today, the traditional breadwinner’s role has undergone a sea change. No longer are men the primary earners for households, with an increasing number of women in the workforce. The last Indian Census stated that 48.5% of the country’s population is female, necessitating insurance coverage for this underserved segment.
  2. Coverage For Life Risks- Life insurance enables women to cover possible life risks in the future, enabling their families to achieve a sound financial footing even in difficult times. The biggest need and importance in terms of life insurance for women is the creation of a financial safety net for the family in their absence. They have an equal responsibility towards the household and their dependents.
  3. Future Savings Creation- There are many kinds of life insurance plans, like ULIPs and endowment plans which ensure opportunities for future savings. At the same time, there are products that may help build wealth in the future through investing in market-linked instruments. Women can save for meeting future goals of the family, like buying a house, the higher education of children, and weddings with tailored life insurance policies.
  4. Greater Financial Independence- Women should be empowered to be financially independent and choose insurance plans that are suited to their unique requirements. In this case, women should have the freedom to choose insurance coverage after calculating their current monthly expenditure, future needs of family members, inflation, present liabilities, and other factors. In the same vein, it can be mentioned that life insurance coverage will enable women to ensure the same financial independence for their family members in the event of their unfortunate demise. The family members will not have to struggle to meet future objectives and monthly costs. They will not have to worry about repaying loans or debts left behind by the deceased individual as well.
  5. Tax Benefits- Women can use life insurance coverage to get handsome tax benefits. They can get tax deductions from their income up to Rs. 1,50,000 under Section 80C on their life insurance premiums. At the same time, they can also get tax exemptions on the payout by the insurance company under Section 10 (10D), subject to certain terms and conditions. In any case, payouts arising from death claims are always tax-exempted. If women add riders like critical illness coverage or other health-related riders to their life insurance plans, then the premiums for the same are also tax-deductible up to Rs. 25,000 (non-senior citizens) or Rs. 50,000 (senior citizens) under Section 80D. In this way, women can maximize their tax benefits.

Hence, women can ensure financial security for their families in the event of any untoward situation while also utilizing life insurance plans with savings/investment components to build wealth for the future. As a result, they can create a corpus for retirement and also enable their family members to achieve financial independence.

At the same time, women also get the benefits of lower/discounted premiums from many insurance companies. The tax benefits are the icing on the cake, enabling women to lower their taxable income considerably. It is essential to empower women with regard to knowing more about life insurance and why they should avail of the same. Greater financial security and independence are necessities for every individual in the current scenario, and women are no exception.


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