Why Women need Life Insurance

Our constitution guarantees equality to all its citizens irrespective of caste, financial status, colour or gender. Since independence it has been one of the prime agendas of the governments in power to promote the right to equality granted by the constitution in every part of the society and country.

The current government has also come up with various schemes like Beti Bachao Beti Padhao and others to ensure they provide a level playing field in terms to opportunity and a good environment to protect girls.

Educational institutions, government agencies and corporate companies have made alignment with the agenda of the government and come up to open their doors for women population and ensure that they do not lag behind and share equal prospects in the growth story of India.

This has resulted in increased income and financial independence for women. Women nowadays, in all walks of life are equal to men. Life Insurance is nothing but financial security tool and it is needed by everyone who wants to secure their financial future and not related to gender at all.

Women also need insurance as much as men do. They have also the right of taking their financial decisions and control their money. Considering the increasing financial knowledge and independence of women, life insurers have started looking to the need and importance of female customer segment and are coming up with various tailormade plans specifically for women so that they can opt for the same as per their needs.

In this current article we will discuss about some reasons for which women needs life insurance and obviously some of the reasons will be exactly the same for which men need it.

  • Financial security for family in case of sudden demise: Similar to men, working women in public and private companies, self-employed or entrepreneur need a financial security for the family specially kids, in case of their sudden unfortunate demise. It is the true that the need for such families where both the couples are working is relatively lesser that families which are solely dependant on a single bread owner. This is because in case of absence of one earning member the other is there to support the family. But it doesn’t mean that working women should not purchase a term plan insuring themselves, considering the financial security of their dependants even if the spouse has another term plan in his name. In fact, working couples can opt for joint life term insurance plan insuring two lives in a same policy.


  • Critical illness: Cancer is a deadly disease which is increasing in women of whatever age group. Everyone irrespective of gender are exposed to a wide range of many other critical and serious illnesses. There are certain types of cancers like breast and ovarian cancer which are female specific and the life insurance products which generally covers critical illness as add on cover or inbuilt cover is a great tool to be financially secured in case such an untoward incident occurs to our life. Women should opt for life insurance policies with women specific critical illness covered with other to ensure they are not in a financial crush or that crush does not stop them from getting a good and timely treatment to cure the disease.


  • Personal accident: This is also offered with many different life products which ensure a benefit is paid when the insured gets disabled due to an accident. It is a better way to remove dependency on others at this time of distress.


  • Life insurance as a saving tool: Women are considered to be better saver of money than men. Life insurance has many endowments and saving products that even provide guaranteed returns. If the person do not have any knowledge which may be true for some of the women, how to invest the money for better returns then it is always better to rely on the insurer who can invest the money with his expertise and knowledge thus generating better returns for the policyholders.


  • Retirement planning and pension products: Continuing on the above logic working women need and should plan their retirement with purchasing pension and retirement products which provides them option of investing their hard-earned money into Debt, equity or a combination of both.


  • Leaving a legacy: Who more than a mother will want to leave a legacy for their dear children and what a better way than taking a life insurance policy will be to ensure the same. There are life products like whole life insurance, term life and other which ensures that the children can receive a handsome amount as lumpsum or as a fixed stream as a legacy left for them by their loving mother.

Not only working women should have access to financial products like insurance, we should make a trend to gift and purchase life insurance products to women who are special in our life whether they are having a source of income or not.

Annuity products when gifted can create a definite permanent stream of income for say a mother. Similarly, life insurance investment products can ensure proper growth of your money especially if the person whom you are gifting the same do not have the proper knowledge of investing the money.

Life insurance products must be viewed as a holistic financial product which not only help in untoward and unfortunate incidences but can help with future planning and investment as well.





MCQ’s on Life Insurance Licentiate Exam: IC 01 / IC 02 / IC 14 (Total 300)


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