Wealth Guide: Why women should get a separate life cover than her spouse, expert explains

The Covid-19 pandemic has impacted people across the globe, changing the way we work, live, and manage our health.  We have witnessed a dominant share of women Covid warriors who have been on the front lines as doctors, emergency and essential services workers and caregivers. Amid all this Sanjay Tiwari, Chief Strategy Officer, Exide Life Insurance, explains why women should get a separate life cover than her spouse. 

Sanjay Tiwari opines, "The pandemic has resulted in an increased burden on working women in terms of family caregiving responsibilities. Given the traditional gender roles, a woman while working from home, had not only to focus on her work but also manage children (with schools being closed) and other household chores. Several women had to quit their jobs while others had to face a slowdown in their career progression."

"While none of us could have planned for the pandemic the significance of financial planning, more so for women, has become more important than ever and women need to take charge on this front too. Till a decade ago, there was a wide gender gap when it came to financial planning and insurance coverage for women. That gap has narrowed in recent years due to more equal opportunities for women in education and employment, a growing awareness about the need for life insurance and, more importantly, the fact that women’s lives matter as much as men’s," Tiwari added.

"It is a known fact that even the earning woman allows the man of the house to takeover when it comes to financial planning while we have all experienced how our mothers’ secret pillow stash of cash has come handy during crunch times. Unlike common perception, women have an innate talent to manage finances. While patriarchy may have subdued this spark, women should strive to claim what is rightfully theirs. Over the years, women have left a huge mark as investment bankers, fund managers and financial planners. For those who are not confident to own their financial decision, it is time to change that mindset. The start has to be made by working women to take charge of their own financial planning which helps them secure their lives and future against uncertainties and maintain their financial status. From my knowledge of working in the insurance industry, I’d like to point to the fact that women still have insufficient or no life cover. This reflects poorly on us because women are a key pillar of our families, workplaces and the society," he added.

"There could be a question that why would a woman need a separate life cover than her spouse? Clearly there are merits:

-A comprehensive life cover provides for protection against death, disability and disease for self and dependents. Hence it is important for a working woman to buy term plans as a start depending upon their requirement of income replacement especially during these uncertain times. This comes to aid not only for her own benefit but also provides as an intangible gift to the loved ones in cases of sudden demise of the policyholder. 

-Life insurance plans also offer guaranteed returns and are one of the best avenues for tax efficient savings over long term. A working woman can invest in a life insurance savings plan to take care of periodic household expenses, planning for family vacations and also some life stage expenses.

-The pandemic has seen many working women turn into entrepreneurs and incubate many start-ups. A life insurance investment plan can help a working woman build a corpus to fund such dreams and ambitions. 

-Care for self is most important and one of the key aspects of our lives is managing health and health care expenses. There are fixed health benefits plans offered by the Life insurers which are a must for a working woman, specially coverage against non-communicable diseases such as cancer (as employer provided health insurance may not be adequate)

-A working woman can gift her parents a health policy as well as get one for her spouse and children

-Data points have shown that women have a better longevity than men. Thereby, it is very important to plan for the retirement age as well. Life insurance deferred pension and immediate annuity plans become an integral part of financial planning," he added.

"This list can have many more merits on why a working woman needs comprehensive life insurance solutions for her financial planning and safeguarding not only her future but also of her loved ones. In a world full of technology and exposure, women also need to care for themselves in every way possible, not just by being there for their family. Self-development and a semi-concrete independence is vital for every individual who wants to survive these days. Reliance on trust funds, monthly pocket money expenditure, etc. is very limited and can even become a railroad beginning from burden to annoyance. It should to suffice it to say that women have to bring attention to their own well-being for a smooth functioning of the society," he concluded.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)