Everything You Need To Know About Life Insurance For Women

Considering the rising contribution of women in family finances and more women picking up the baton for fulfilling financial responsibilities, life insurance for women is a must. Some might get covered under the life insurance policies for their spouses, but that might not prove to be enough in certain cases. Hence, in the segment below, we have discussed everything women need to know about life insurance.

Life insurance is a must for women:

At present, women are also contributing actively to household income. Their income ensures that their family leads a comfortable life. In some cases, women are also the sole bread earner of their families. Consequently, it is crucial to sustaining the flow by putting money into life insurance and investment schemes. The policy ensures that all the essential needs of their family are met even after their demise.

Insurance that is suitable for women:

  • Term insurance: Term insurance is the simplest form of life insurance. The term plan only offers death benefits and nothing else. Some term plans may guarantee the return of premium after the expiry of the tenure of the policy. Such a plan is aimed at ensuring the financial security of their families. Their loved ones will be able to pay for the expenses and other liabilities such as student loans, even after their demise.
  • Investment insurance: A ULIP policy, where one-half of the premium is used to provide coverage while the other half is invested in the markets, is an absolute essential. A plan like this will provide financial security as well as add to their wealth. ULIP investments also come under the blanket of Section 80C, which makes them eligible for a tax deduction proving to be a beneficial option of life insurance for women.
  • Medical insurance for child/dependent parents: Life insurance for single women has rider options to cover the medical costs of their parents. The premium paid towards such a plan will enjoy the deduction benefits of Section 80D. Women with children can either add them as their primary beneficiaries or get a different plan for them. If the children are below the age of 18, it is preferable to get separate child insurance.

Buying insurance has become convenient:

Those women who mostly work from their home can now find and buy the insurance that fits their lifestyle. Most insurance companies have hosted all their plans on their respective websites. All women can now browse, compare and buy it online. Even the payment of premium can be made through the online medium. For example, Tata AIA policy payment is made through their website in three simple steps. The insurance companies have provisions to automate the premium payment system as well.

Factors deciding the insurance policy amount:

  • Age: Age plays a major factor in deciding the premium amount. The older the woman, the higher the premium she has to pay. However, age is not the only parameter.
  • Annual income: Nowadays, both parents combine their annual earnings to give their children a better lifestyle. Therefore, while deciding on a term plan amount, women should consider their earnings and how it might affect their children in the future.
  • Financial goals: Women should scrutinise all their financial goals before thinking about the insurance amount. It will help them to identify the type of insurance that will be most beneficial to them. For example, if they intend to buy expensive jewellery or a car, they can opt for a savings insurance plan.

Why is the premium amount for women lower than that of men?

Statistical and scientific studies have shown that women tend to outlive men. Men are also more prone to heart diseases in their 40s. It is quite simple for the insurance companies; if someone is living longer, they will pay a premium for a longer time. Hence, the insurance companies offer cheaper premium rates to women to encourage them to buy insurance.


A woman’s priorities might change with time. Therefore, they must ensure their dreams are fulfilled, and the future of their loved ones is protected through a life insurance policy. Check out the different types of life insurance plans, assess your financial goals and select a plan that best suits your needs.