Important Reasons Why Women Need Life Insurance in India

Important Reasons Why Women Need Life Insurance in India


Life insurance plans with maturity returns are good investment plans for all without any distinctions. So, anyone can invest in life insurance plans and get good and secure returns. And even if you are purchasing it for a family member and not yourself, you can still enjoy the tax deduction benefits. But when it comes to investing in life insurance for women, it can provide more assistance for a brighter future. If you are still confused about whether life insurance is important or not, you can reach a conclusion by reading the below points.

The Role Life Insurance Plays in Women’s Lives

When people have excess funds, they choose long term investment plans for themselves or their children. But what if there are limitations on the availability of funds? Life insurance can be of much help in such cases because of its long-term investment like features. But if the plan is meant for women or a girl child, they have several other specific benefits. And these benefits differ for women belonging to various age groups.

Childhood and Education

When a life insurance policy is for a minor girl child, you can opt for plans which provide early returns. And if the maturity returns are within five or ten years, it will be much better. Because when you purchase insurance policies for young children, the returns can fund their education. Also, having different health and accident covers in the policy will provide the children extra protection.

Higher Education

If the plan you purchased has a maturity of more than ten years, then the returns will also increase with the years. Such plans are great to accumulate large amounts to fund higher education, especially abroad. So, the girl child will get the freedom to choose the educational stream of her preference. And that too without the constraints of lack of funds or depending on student loans.

Business and Entrepreneurial Investment

Life insurance plans also prove to be better modes to invest money for women. Such plans, particularly the Unit Linked Insurance Plans (ULIPs), have a high returns ratio. So, the maturity amount of the plan can fund the personal financial requirement for women. The funds help business ventures, start-ups, or even self-investment where they use the funds for professional skill development courses.

A Backup Fund for Future

People also invest in life insurance plans for women as backup plans for themselves or the women in the family. Having a financial backup plan always helps in recessions or when other income sources deplete. In some cases, people also use backup funds for more personal expenses such as building homes, buying vehicles, or buying property. And using backup funds for such trivial but large expenses helps the personal budget to remain unhindered.

Retirement Plan

Women also choose life insurance as types of retirement plans for themselves, or people choose it for the elder and dependent family members. Having an adequate retirement plan will help them have a steady source of income when they are enjoying their retirement life. And it also keeps them away from any financial woes. Retirement plans also increase their chances of getting treatment and relief from old age-related ailments.

After knowing the benefits of life insurance plans, you won’t have trouble pinpointing the greatest advantage, self-dependence. Every woman would benefit from becoming self-reliant, be it when they are still in school or well settled in a career.

One must not let go of the high returns, as women can claim higher tax relaxations in their income tax. So, it is advisable that women invest in life insurance themselves or parents invest in life insurance for their girl children to have a better financially secure future.