Dec 27, 2017 11:00 AM IST | Source:

Insurance policies that women must consider buying for financial security

Whether it be an earning member or a home-maker, women should opt for specific insurance cover for financial security.

Navneet Dubey @navneetdubey91

Aspiration comes with the desire of wanting things independently. So, whether it’ one’s personal or professional aspiration, desire to achieve one’s goals should not be dependent on others. And one should, of course, let financial insecurity trample on their aspirations.

When we say that women have a significant role to play in one's family, whether it be an earning member or a home-maker, opting for insurance policies is a must. However, the decision of taking policies should be analysed well before availing it because one should only opt for it when it is utmost required at a particular life-cycle stage.

Here are the four important insurance policies that women must consider for themselves and their family:

Term Insurance Policy

A term plan is the most important policy for any working individual, whether a man or a woman. Also, the premium of a term insurance is slightly lower for a female as compared to their male counterpart. “In case, where the woman is a single mother with a small child or has older parents to take care of, it is a must-have product for the financial protection of the family. It comes for a minimum premium amount and covers the policyholder for a longer period of time. On the demise of the policyholder, the total sum assured is paid to the nominee in one go. There are many term plans available in the market, and different insurers are now providing various benefits and riders like, Critical Illness Cover, Cancer Cover, Disability due to accident etc. to suit the requirements of working women,” said Jerry Bhutia- Director,

Health Insurance Policy

A health insurance is another important insurance that any woman should consider for herself. With the rise in a number of diseases due to lifestyle and stress-related issues, it is very important to invest in a good health policy. One may argue that they have a health cover provided by their employers but they must be aware of the fact that the cover ceases once the employment does. Also one may opt for a Super Top-Up Health Insurance plan, which covers the medical expense beyond the threshold level or deductible one has chosen and the premium for these Super Top-Up plans are as low as one-third to half of the normal premium. The healthcare cost is surging every year, therefore, one must look at buying at least Rs. 5 Lakhs cover to prepare for any medical emergencies. A single hospitalisation can burn a hole in your pocket and eat up quite a lot of your savings.

Cancer Insurance Policy

The much-dreaded word ‘Cancer’ has slowly crept into our lives, and according to WHO report, cancer is the second leading cause of death globally. “Among women, the most common kinds of cancer diagnosed in past few years were breast, ovary, lip and oral cavity, lung and cervix. Hence, the need for buying cancer insurance is very crucial for a woman. With the rise in the cost of cancer treatments, chemotherapy, and hospital charges, the treatment cost of cancer can be detrimental to a family’s financial condition,” said Bhutia.

Unit Linked Insurance Policy

If you are looking to fulfil your long-term financial goals such as, education of your children or building a retirement corpus etc., ULIPs can be the best investment tool in today’ scheme of things. ULIP (Unit Linked Insurance Plans) is hybrid of insurance and investment products -- hence, it helps you save over a period of time and also provides coverage against any unforeseen circumstance. Broadly, there are two kinds of funds in ULIPs, namely, Debt and Equity which gives you the flexibility to investment based on one’s risk appetite. One of the best features in a ULIP form of insurance investment is that, an individual can switch between funds (Equity to Debt to Equity), free of cost, unlimited times, during market fluctuation to safeguard one's investment and this coupled with tax exemption on the premium paid and on the return amount, makes ULIPs one of the best form of investment.

“It is a great option for women, who have a higher disposable income as the returns in ULIPs are really good if invested for 10 years or more as the probability of making a loss is next to zero if invested for more than 10 years. A woman is a backbone of a family, and it is very important to protect her interests by taking the right kind of cover for her. While you contemplate the above insurance policies, make sure you research well and compare before you invest in the plan that fulfils your requirements,” said Bhutia.

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