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Term Insurance 942 views February 8, 2019
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The internet is reiterating the popular feminist slogan “The Future is Female” following news of yesteryear actress Lisa Ray’s becoming mother of two twin daughters through surrogacy. While this slogan hints at the society’s willingness to grant necessary rights to women long due to them, it also identifies the latter’s intent to take charge of responsibilities that follow their empowerment.
Today’s society communicates and supports ideas that challenge misogynist mindsets and beliefs synonymous with lives bottled up in patriarchal households. The trend to share power and rewards with female colleagues mirrors the financial empowerment and consequent economic independence of women and, thus, their increasing role in shouldering responsibility both at home and in office. As women are contributing more to the income of a family, it’s high time that they realize the need for buying term insurance that will make up for the loss of their income in the event of their untimely demise.
“Do women really need a term insurance plan?” This question is common and points to the morbid tendency of believing that a woman’s life might not be worth anything. However, women, these days, contribute to the financial security of their households, thus, implying greater dependence on their incomes. Though one cannot put a monetary value to life, having a term insurance plan in place helps to tackle the misery stemming from unfortunate situations like death, disability, and disease. The following points indicate the need for women of today to part with a certain part of their incomes towards regular and timely payments of their term insurance premiums.
Men are not the sole breadwinners of their families anymore. Women contribute too in a fair proportion. Single women now continue to support their aged parents, while the percentage of single mothers taking care of their children’s needs is also rising. While this trend highlights an increasing sense of independence among women sans the need of any male support, it also underscores the vulnerability of the family relying on the woman’s income alone. There are also instances when the women in the family earn more than their male partners, thus, underlining the heavy dependence of the family on the earnings of the former. While the death of a mother or wife can push the family into feelings of inexplicable grief, sudden loss of income due to death compounds the feelings of loss. An assured life cover helps ease the monetary woes of the bereaved family. A term insurance plan ensures death benefits that are handed over to the nominee(s) as a lump sum amount.
It is becoming increasingly common for men to buy term insurance in a bid to keep their family or dependents secure in case of their unforeseen death. However, in the face of rising inflation rates, no matter of financial corpus may not be enough when it comes to securing an adequate amount of life cover for one’s family. Similar to how the women’s income adds to the income of the entire household, buying a term insurance plan will add to the life cover already bought by the husband in his name. This means an added life cover to that already planned, which in turn would ensure a financially secure future for the nominee(s).
As it is, the premiums charged on term insurance plans are the lowest. However, due to lack of adequate information, men tend to opt for a term insurance plan with a lower sum assured amount. However, this amount may not suffice to meet the costs of daily living. The insured male members realize their folly only after they have bought the policy. To make up for the low amount of sum assured, women may consider buying an additional term insurance plan in their name with a greater sum assured so that the death benefits received will make up for the loss of income in the event of their sudden death.
We all are aware of low premium rates charged on term insurance plans. Since your earnings have a lot to do with the amount you put in, most investment plans require a hefty amount to be paid regularly or in a lump sum to yield good returns. However, term insurance plans are bereft of any savings or investment component, thus, necessitating lower premium rates. With death benefits assured on payment of low premiums, women must consider buying term insurance to ensure comprehensive coverage to their dependents when they are no more.
Death, disability, and disease are three unfortunate events that families need to be guarded against. And what better way could be to protect your loved ones than buying term insurance and ensure that they stay protected throughout? Today’s insurance companies are now selling term insurance products that do more than hand over the insurance amount on the death of the insured. Term insurance plans now come with riders or added benefits that can be availed with payment of an additional nominal amount of premium. This means greater coverage at nominal costs. A look at the following riders will help understand how availing them can keep you and your family protected at all times.
With this rider in place, the insurer is bound to pay an additional amount of sum assured in the event of accidental death of the policyholder.
Changing lifestyle has raised the pervasiveness of critical illnesses, the treatment of which may cause a dent in your pocket. If the policyholder suffers from any chronic disease included in the list of critical illnesses mentioned in the policy, the insurer has to pay a lump sum amount to the policyholder on being diagnosed with the disease. For this, the insurer charges a very nominal amount as Critical Illness Rider.
Every term insurance necessitates regular and timely premium payments. But, what if the policyholder is incapacitated because of a serious accidental injury? Keeping this in mind, the insurance companies now give the option to buy Premium Waiver Rider in return for an additional amount. Availing this rider while buying the policy means that the insurer waives off payment of future premium amounts in case of sudden disability resulting from the accidental grievous injury.
Similar to the Premium Waiver Rider, an additional payment for this rider ensures that the insurer waives off future premium payments if the policyholder is diagnosed with some terminal illness.
Despite the quantum of multiple benefits available on term insurance, women tend to shirk away from buying this policy assuming that paying for insurance is a responsibility limited to their menfolk. Assuming equal responsibilities is equally important to seek rights of equality, which means that women of today must consider paying for term insurance to ensure adequate monetary security in the event of sudden crisis stemming from death.
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