The Unseen Value: Why Life Insurance Matters for Every Woman in India
In a world of evolving financial landscapes, the role of women in India, particularly homemakers is often undervalued. Their contributions, though sometimes unquantified in monetary terms, are indispensable for familial well-being. Despite this, many women lack life insurance coverage, a critical element for their families’ comprehensive financial security.
Life insurance isn’t just a financial product; it’s a safety net, especially for those whose work often goes unrecognized in financial terms. It’s a mechanism to shield a family from the economic fallout of an unforeseen event, guaranteeing financial stability when it’s needed most.
The Coverage Gap: Insurance Trends Among Indian Women
Recent reports highlight a significant disparity in insurance coverage between working women and homemakers. A study conducted by Max Life and Kantar reveals a notable difference: 79% of employed women have life insurance, with 35% opting for term insurance. In stark contrast, only 18% of homemakers have secured term insurance.
This disparity highlights a common misconception: many women believe life insurance is primarily for their husbands, which is far from the truth. Additionally, a lack of awareness about how to assess their own financial worth often leads to underestimation of the impact of their contributions.
The Indispensable Role of Homemakers
While working women are increasingly recognizing the importance of life insurance, homemakers’ need is just as critical. Homemakers manage a diverse range of responsibilities, from household chores to childcare and elder care. Their efforts directly influence the family’s financial health, making life insurance an important investment for security.
Consider the multitude of tasks a homemaker typically handles: cleaning, cooking, childcare, and managing the home. If these tasks were outsourced, the family’s expenses would rise significantly. Life insurance for homemakers can cover these potential costs in their absence, ensuring financial stability. It acknowledges and values their extensive contributions to the household.
Leveraging the Human Life Value (HLV) Calculator
To optimize insurance planning, tools like a human life value (HLV) calculator play a crucial role. This calculator assesses an individual’s monetary value, considering income, expenses, and future financial needs. It determines the appropriate coverage needed to protect dependents in the event of an untimely death, considering factors such as age, occupation, and family responsibilities.
Take the example of Sudha, a 35-year-old homemaker in Mumbai and mother of two young children. She manages household chores, cares for her children, and supports her husband’s aging parents. If her contributions were outsourced, it would cost approximately ₹40,000 per month.
Using the HLV calculator, her life value can be estimated:
- Annual Household Contribution = ₹40,000 × 12 = ₹4,80,000
- Future Value of Contributions Over 20 Years (with 6% inflation level):
- After 1 year: ₹4,80,000 × 1.06 = ₹5,08,800
- After 2 years: ₹5,08,800 × 1.06 = ₹5,39,328
- After 3 years: ₹5,39,328 × 1.06 = ₹5,71,688
- … (continuing for 20 years – a timeframe in which her children would become financially independent)
- Total sum of future contributions = INR 1,76,57,083 (approximately INR 1.77 crore)
Therefore, Sudha’s estimated Human Life Value (HLV) ≈ ₹1.77 crore, showing that her loss could place a substantial financial burden on her family.
Conclusion: Protecting the Unseen
Life insurance is more than just a policy – it is a recognition of a woman’s immeasurable value. Whether a working professional or a homemaker, her role is vital. Ensuring financial security is not merely a transaction but a testament to the importance of her contributions. Every woman deserves to protect her worth through thoughtful financial planning, ensuring her family’s future security.
