Working women need to consider life insurance

As the Indian economy is developing, the mindset of people is also in the midst of a transformation. Some decades ago, the best place for women was considered to be their home.

It was thought that women are born to look after the family and children. But now the situation has changed and so has the position of women in society. Women, today, work shoulder to shoulder with men in almost every field. But the mindset towards buying life insurance for women has yet to undergo a change.

While women indicate they understand life insurance as a product, few have quantified its economic value. Some life insurance companies have come up with policies exclusively for women, but the awareness and interest towards insurance products is still quite less. 

Studies have shown that in India, social taboos and illiteracy has made the situation worse. On the one hand, a woman’s earning is at par with that of her male counterpart, on the other hand, in terms of insurance, they are either uninsured or grossly under-insured.

So, more than ever, women now need life insurance. Here’s why.

The number one reason still remains same — to financially secure the future of her family. Working women must buy a life insurance policy as it provides adequate security and reduces the financial distress in case of any unpredictable and unfortunate event such as death, critical illness, accident or permanent disability.

A single working woman could have aging parents and younger siblings as dependents and to ensure they lead a comfortable life even in her absence she should opt for a life insurance. For young newly married women, a life insurance policy can help in providing financial stability in case of spouse’s death or critical illness. For young mothers, a life insurance policy could ensure a smooth higher education for the children.

It must be appreciated that a woman’s contribution to the family income is of value to the finances of the family, that value should be protected.

If the working woman whose income helps to support the family expires suddenly, a life insurance policy will provide financial support for them.

Of course, it’s unpleasant to think about and plan for one’s own death. But it is a responsible way to make sure your family doesn’t have to worry about the financial crunch besides coping up with your loss.

Another positive factor is that life insurance premiums are priced largely according to the average life expectancy for gender and age.

Women need to pay lesser amount of premium than men, primarily because men have a shorter life expectancy. In fact, women on average outlive men by about five years.

It is advisable to buy a life insurance plan as early as you can. Plans tend to be cheaper when the insurer is younger and healthier as with age, one tends to develop various ailments. This is especially true of women for the various health complications they face as they grow older.

Our advice to all women is simple. Do not be misled by misconceptions. Do not procrastinate. Do not wait till you believe that you are earning enough.

Read up; speak to informed investors, especially older working women among your colleagues or family friends. And buy insurance at the earliest. You owe it to your loved ones.

(The writer is Chief Agency Officer at Bajaj Allianz Life Insurance)