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Abhibyakti Singh

Abhibyakti Singh

Executive Assistant, LXME

Let me ask you a question! ‘What, according to you, is a good life?’ Are you also thinking of a life that is happy, comfortable, and secure? Where you don’t have to worry about the future and can enjoy every moment to the fullest. Insurance helps you do just that. It takes away the stress of unexpected events by protecting you from risk. In this blog, we’ll explore the importance of insurance and some must-have insurance plans for women!

What is Insurance?

Insurance is a plan that provides protection against the risk of loss in exchange for a premium (fee). It offers financial compensation in case a specific loss occurs. The purpose of insurance is to lower financial risk in the event of uncertainty.

Why is Insurance important for every woman?

Financial Security –

Insurance provides coverage against various types of risk, such as unexpected death, health problems, accidents, etc. It gives a woman financial security and stability in uncertain times.

Protection of Family –

For a woman, safety of her family is an important priority. Insurance helps her ensure that even in the event of her death or disability, they are secure, protected and will enjoy a good quality of life.

Unique Needs –

Women have certain unique life stages and health risks. For example, pregnancy, childbirth, breast cancer, cervical cancer etc. Insurance helps take away financial stress from these important phases of a woman’s life and protects their interests.

Essential Insurance plan for women

There are two types of insurance plans that are essential for every woman to have: Term Insurance and Health Insurance.

Term Insurance

Term Insurance is a type of insurance plan that gives financial protection to a policyholder’s family in the event of their death. Upon the death of the policyholder, a pooled sum of money is given to their family or beneficiary by the insurance company.

For example – Jaya is a 35 year old mother with two children. She is the sole earner of the family and she wants to protect her children’s future in case she passes away. To do this, she has purchased a term insurance policy that will take care of her children’s needs in the event something happens to her.  

Benefits of Term Insurance

Peace of Mind –

Life Insurance gives you peace of mind as you know your loved ones will be taken care of.

Financial Protection –

Life Insurance gives financial security in the event of death.

Tax Benefits –

 According to Section 80C, you can claim a deduction of life insurance premium paid up to ₹1.5 Lakhs.

How much Term Insurance coverage do you need?

Your term insurance cover depends on multiple factors such as your income, lifestyle, dependents etc. Ideally, if you have dependents, your cover should be 20 times your yearly salary. If you don’t have dependents, your cover can be 10 times your yearly salary.

Health Insurance

Health Insurance is a type of general insurance that covers a policyholder’s medical expenses. It compensates for any financial loss faced due to injury, disease or disability. Health insurance can give you coverage for hospitalization costs, surgical and maternity expenses, critical illnesses etc.

For example – Richa is a 24 year old IT employee. She wants to secure her financial future against any health problems. To do this, she decides to purchase Health Insurance and protect herself from any big healthcare bills that may come up in her life.

Benefits of Health Insurance

Protect your savings –

Health Insurance can protect your hard-earned savings during times of medical emergency.

Emergency Needs –

There are many emergency health concerns that can cost you a fortune. In such times, health insurance can safeguard you against financial losses.

How much Health Insurance coverage do you need?

Your Health Insurance cover depends on your income-level, health condition and any ongoing health issues you may have. Ideally, you should have a cover of Rs. 5 Lakh or 6 times your monthly income (whichever is higher).

If you have Health Insurance from your employer, do you need a separate cover?

The answer is: Yes, you do. Here’s why it’s important to have a separate cover for Health Insurance –

Standardized Sum –

Employers provide a standardized sum for every employee’s health coverage which might not be sufficient for your healthcare needs.

Different Needs –

Since, personal factors such as lifestyle habits, medical history, age etc. have an impact on how much cover is needed by an individual, personal health insurance is essential.

Limited Time –

  • Your corporate health insurance will only be available until you’re working at the company.

To sum up, insurance gives women a safety net in times of need and empowers them to live independently. It is recommended that every woman have both Health and Term Insurance Plans with coverage that is suited to their lifestyle.

If you need assistance in buying the best-suited life/health insurance for you then you can connect with our Money Buddy Team.

FAQ’s

Which type of life insurance policy is most suitable for women?

Ideally, one should buy pure life insurance such as term insurance. It costs less and you can add riders as required. (Riders offer policyholders the flexibility to modify their insurance coverage according to their needs). One should not mix their insurance and investment.

Do I need both Health and Life Insurance?

Yes, both health and life insurance are equally important for you to have financial security. Life Insurance protects your dependents i.e. your future while Health Insurance secures your well-being i.e. your present.

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