The outdated notion of the male breadwinner has long led to an incomplete understanding of financial security, often overlooking a woman’s significant contributions to a household. Consequently, life insurance has historically been marketed primarily towards men. However, this perspective is far too narrow. Women contribute substantially, not only financially but also through invaluable responsibilities such as household management and childcare. These contributions have significant economic value, equivalent to the cost of essential services, making it equally important for women to secure their dependents’ future with insurance.
Here are five key reasons why term life insurance is essential for women in 2025:
1. Leaving a Legacy for Dependents
Term life insurance, known for its straightforward focus on life cover, is a vital tool for women. “The principal reason for purchasing term life insurance is to provide financial protection for your family in the event of your untimely passing,” explains Sameep Singh, Product Head – Investments, Policybazaar.com. “Numerous plans offer substantial coverage at competitive premiums. In the unfortunate event of your absence, your loved ones can still experience the life you envisioned for them.”
2. Achieving Financial Independence
Numerous life insurance plans extend beyond basic life coverage, offering opportunities to achieve financial independence. Savings plans offer guaranteed returns over a specific timeframe, while unit-linked insurance plans (ULIPs) provide market-linked returns that are received at maturity. Strategic investment in these plans can pave the way for women to achieve financial independence and pursue personal goals.
3. Attaining Personal Goals
Life insurance can be integrated into your own personal goals, whether it’s purchasing a home or saving for your child’s education. Child savings plans, for example, combine investment and life insurance, thus taking care of both the education of your child as well as life emergencies for you.
4. Retirement Planning
With shifting family dynamics, retirement planning is vital for both men and women starting early in life. “New-age products like ULIP pension plans make retirement easier, allowing for tax-free withdrawals of up to 60% of the corpus upon maturity,” notes Singh. “These plans become cost-efficient with the removal of certain charges and also provide a regular income stream to support life after retirement.”
5. Health Emergencies
Term life insurance plans can include valuable riders, such as a Critical Illness Benefit Rider. This rider provides a lump-sum payout immediately upon diagnosis of a critical illness, as defined by the insurance provider. Once the benefit for the rider has been paid out, the life cover excluding the critical illness cover continues with a lower premium. These benefits provide vital financial support during challenging times.
These points clearly demonstrate the necessity for women to invest in comprehensive life insurance plans. Regardless of your phase in life or preferred career path, financial security is essential for all women. As is often said, insurance is not merely a component of financial planning, but rather, its very foundation.
