There are more than 72 million single women in India right now. Many of them are single, divorced, widowed, or separated. No matter how much money you have right now, it makes a lot of sense to prepare for financial independence and a life where you can support yourself and your dependents if you need to. ULIPs, savings plans, endowment plans, and pension plans are all substitutes that could help you live a comfortable and independent life.
Everyone needs insurance, whether it’s to protect their family, their health, or their wealth. Men and women both need insurance; however, women need to have their own adequate coverage because their needs are different from men’s.
Why There Is a Gender Gap in Life Insurance?
Before we get down to why term insurance for women is important, we need to understand why there is such a huge Gender Gap in life insurance.
Outdated Gender Roles: For a long time, males were thought to be the main breadwinners while women were thought to be caregivers. This archaic idea has led people to think that males need life insurance more than women do, although in fact women are just as important to the family’s income, both through paid job and unpaid household chores.
Effect of Income Disparity: The gender pay gap is true. Women in agribusiness and salaried jobs make almost 20% less than men, and this disparity gets bigger as they move up the career ladder. The World Inequality Report 2022 says that men in India make a staggering 82% of the work income, while women only make 18%. This difference in income directly affects life insurance coverage because it is often based on income, which means that women usually end up with less coverage. Also, the ups and downs in their income can easily make some of the women hesitant to commit to buy term life insurance.
Misconception of lower Risk: Women usually pay less for life insurance since they live longer and take fewer risks. But this could also make them think that life insurance isn’t as necessary for them, which might be why fewer women acquire it.
Disregarding the Contributions of Homemakers: A lot of women, especially stay-at-home moms, do a lot of unpaid work, like taking care of kids and running the house. Life insurance assessments don’t often take this work into account, even though it’s quite important. Losing someone who plays such an important role in the family is still hard, even if they don’t have a job. This oversight makes the gender disparity in life insurance coverage bigger.
Cultural Norms and Societal Responsibility: In India, customary laws frequently say that men are the main breadwinners and are hence responsible for money. This viewpoint may lead to less emphasis on life insurance for women. The idea that men should be the main focus of financial security and women should be the second priority simply makes the gender disparity in life insurance coverage bigger.
Bridging the Gap in Financial Literacy: The National Centre for Financial Education (NCFE) says that there is a big gender disparity in financial literacy: only 21% of women in India are financially literate, whereas 29% of males are. Women may not feel as confident about making financial decisions, like getting term insurance for women, because they don’t know as much about money as men do. This can lead to less insurance coverage.
How can a woman benefit from getting life insurance?
Cheap: Women who choose a term plan pay, on average, 15% less for life insurance than men do. This is because women live longer and are less likely to get some health problems. The average life expectancy of Indian women exceeds that of their male counterparts by around 2.5%. This makes things better for insurance companies because the risk and likelihood of claims decrease as people live longer. Consequently, women may get term insurance for women at lower premiums compared to men of equivalent age. But the real cost of term insurance for women will depend on things like your age, health, and how much coverage you need.
Financial protection: Everyone wants to protect their money. We know that you want to make sure your future is financially secure, whether you’re a working woman, a stay-at-home mom, or a daughter taking care of her elderly parents. A term plan with a maturity benefit gives you exactly that. The death benefit would give the woman’s dependent family members some financial security if something happened to the insured person. You could still get your premium back after the policy term ends, depending on the type of plan you chose. You are able to use this money to accomplish a long-term goal, like buying a car or going on vacation.
Helps you Pay Off Your Debts: Women are now able to support themselves financially. A lot of them are even borrowing money in order to help them reach their goals. If something were to happen to these women while they are paying off their loans, their spouse, kids, or parents could suddenly be in debt. By getting a term life insurance policy, you make sure that your family will be secure after your demise.
Make a plan for retirement: With inflation on the rise, it’s more crucial than ever to plan for retirement. Women should also have their money in order before they retire. When you buy term life insurance plan with a maturity benefit is a fantastic method to do this. Over time, the policy will build up a corpus over time and provide it to you as a lump sum on maturity.
Planning for Taxes: Women are now in charge at work. As many of them are earning, they will be able to buy term life insurance easily, and moreover, it helps in their tax planning as well. According to Section 80C of the Income Tax Act 1961, you don’t have to pay taxes on the premiums you pay to keep any life insurance policy, including term insurance. Also, the money you get from these plans when they mature or when you die is tax-free.
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At last,
Even with all the change, people still think of life insurance as a “men’s thing.” Men are more likely to get life insurance since, in the past, they have been the ones who made the most money. But here’s the good news: things are changing, and now is the perfect time for women to take their rightful place, receive the coverage they need, and ultimately bridge that insurance gap.
