Why term insurance is important for women

Why Term Insurance Is Important for Women

Life Insurance

Unlike before, women these days are no longer a ‘weaker sex’ of society. Moreover, they are more independent, stronger, aware, and on par with men in all areas of life. In this day and age, making strong financial planning is important for both men and women.

And, with over two-thirds of women being a co-earner and in many cases the only breadwinner of the family, having term life insurance is imperative to secure the financial future of your family even in your absence.

Even though, most of the women still depend on their spouses for financial protection, having a life insurance policy changes this situation and makes women more financially secured in many ways. Further here we have discussed the reasons why women must have a term insurance policy.

Benefits of Term Life Insurance Plan for Women

The following are the benefits of a term life insurance plan for women:

1. Provides the Benefit to Accumulate Wealth

Along with the benefit of providing financial security to the family in case of any eventualities, the term insurance plan also helps women to accumulate wealth for future financial objectives. The insurance coverage offered by a term plan can help you to forgo the liabilities even in your absence. Moreover, with plans like Term Return of Premium (TROP), you get to avail the benefit of the return of premium as a survival benefit if you survive the entire tenure of the policy.

2. Provides Financial Protection to the Family

This is one of the prime features of the term insurance policy. As a co-arner of the family, it is the equal responsibility of a woman to ensure that her family is financially secure even in her absence. This objective can be easily achieved with a term insurance plan. The higher coverage amount offered by the term plan ensures that your family is financially secure in case of your uncertain demise. Moreover, the term plan also takes care of the future liabilities of the family and repayment of loans, debt, etc.

3. Affordable

This is another advantage of a term plan that you get. The term insurance policy offers premium discounts to female policy buyers. This is because, while deciding the premium rates of the policy many criteria are taken into account, and gender is one of them. As per the records, it is stated that females have 5 years more life expectancy than males, thus, insurance companies fined female buyers less prone to any diseases. This results in more discounted premium rates for females as compared to males.

4. Tax Benefit

If you are an earning women and you come in the tax bracket, then you will fairly understand how vital role tax-saving plays in the process of financial planning.  Even though there are many different ways to save tax purchasing a term insurance plan is one of the most popular options to save tax. The premium paid towards the term insurance plan up to the maximum limit of Rs.1.5 lakh is eligible for tax exemption U/S 80C of the Income Tax Act. Moreover, the survival benefit offered in the term Return of Premium Plan is also applicable for tax exemption U/S10 (10D) of the Income Tax Act.

5. A Steady Investment Option

It is more than just a plain instrument that offers an assured replacement at the loss of income but also acts as an investment that offers a significant return on the amount of the premium paid, during an active tenure of the policy. As per your choice, several life insurance plans offer considerable returns at the time of maturity. So, it offers dual protection by letting the buyer achieve investment goals and protecting the family from a sudden income loss.

6. Easy to Understand

One of the most common benefits of a term insurance plan is that it is easy to understand. Term insurance does not include different components like savings, investment, etc. in a term plan, you just need to pay the premium of the policy regularly, and in return, life coverage is offered to the insured for the fixed tenure of the policy.


In this day and age, as women are equally independent and accomplished as men, creating a financially strong backup for the family is important for both men and women. Thus, it is a must to have term insurance coverage to secure the financial future of your family.


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