Invested in FDs, MFs? How women expose themselves to unwanted threats sans this option

These days, an increasing number of women are either co-bread winners or even sole bread winners for their families. However, when compared to other financial instruments such fixed deposits and mutual funds, many don't consider having a life insurance policy. It is not uncommon even for financially independent women to pass the baton to their spouse when it comes to buying life insurance.

Ensuring financial stability
In case of any eventuality, as a sole breadwinner, you would always want to be assured that your family continues to be financially stable and all their long-term financial needs are provided for. If you have a mortgage or loan in your name, term insurance is the first thing you should sign up for to secure your assets.

Even in a dual-income family, the loss of either parent would have serious implications on the family's finances. Apart from owning the financial burden completely, it may warrant the surviving parent to give up their job in order to take care of the children. The amount of life insurance you need depends mainly on your lifestyle and financial liabilities. In general, your life cover should be enough to pay off any loan and provide money for family to maintain the same lifestyle.

Interestingly, term insurance plans are available to working women at a lower premium rate, as compared to their male counterparts. One can opt for a lumpsum benefit or a monthly income payout. A preferred option is to opt for a combination of lumpsum amount, plus income stream, which will ensure that your family's lifestyle is not compromised. A Rs 50 lakh cover for a 30-year-old non-smoker female covering till age 75, will cost as low as Rs 5,000 a year or Rs 14 per day.

Safeguarding against health predicaments
The incidence of premature deaths, non-communicable and lifestyle diseases among women are rising in India. As per the latest global figures released by the World Health Organisation (WHO), around half a million women die from cervical cancer and half a million more from breast cancer each year. Treatment for such illnesses is not only lengthy and traumatic, but expensive too and involves a lot of lifestyle modifications. 

Our research confirms that most people dip into their life time savings to cover treatment costs and care. Hence, an insurance cover that offers benefits of a comprehensive health insurance and a critical illness cover, becomes imperative.

Life and health insurance firms offer a range of affordable health products and riders that include medical expenditure and other incidental costs in case of diagnosis of a critical illness or any surgical procedures. It is important to know that while a critical illness plan offers death benefit to the beneficiary, they also do safeguard policyholders from any setbacks due to loss of income arising from critical illnesses.

Ensuring encumbrance free estate through MWP
The Married Woman Property (MWP) Act protects the woman's right to death claim proceeds of her husband along with children. Such claim or maturity proceeds cannot be detached from the estate of the deceased, nor can it be accessed by the creditors. If the policy is bought under the MWP Act, even relatives or people, who the policyholder may have borrowed money from in the past, cannot make a claim and the welfare of the wife and children will be protected.

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This is particularly relevant in case of joint families, where there can be instance of multiple claimants from the family or business families. This is a significant benefit that can be opted for at the time of buying a life insurance policy and goes a long way in protection financial interest of married women.

By: Rakesh Wadhwa
(The writer is CMO & EVP, strategy and retail assurance, Future Generali India Life Insurance)

Source: DNA Money