Term insurance or pure life insurance promises the payment of a fixed death benefit to the beneficiaries if the policyholder dies during the specified term. Since there is no maturity benefit on survival till the end of the policy term, one can renew the plan for another term, convert it to permanent coverage or let it lapse once the term expires. This makes this kind of insurance appropriate for those who want to financially secure the future of their family in their absence. Therefore, single women who are the sole breadwinners of their families can ensure the financial security of their siblings and parents through this insurance. If you are a single working woman, here's why you should opt for pure life insurance.
How Does It Work?
It is one of the online plans offered by an insurance company. Once you choose the desired policy term, you can use a term insurance calculator online to calculate a suitable sum assured and premium amount. You need to pay the premiums to keep the policy active. In the case of your demise during the chosen term, your nominee or beneficiary can file a death claim with the insurance provider. If the claim is approved, the nominee will receive the guaranteed death benefit. It can help meet the financial requirements of your loved ones to compensate for the loss of income due to your death.
Benefits of Term Insurance
- Affordability: This is a primary benefit of this kind of insurance. It allows you to get a significant cover at a highly affordable premium price. Since online term plans are available today, you can further avail a lower premium as agent commissions or other costs of intermediaries are eliminated.
- Renewal: If you outlive the policy term, you can renew the plan by choosing another term since there is no maturity benefit. In the event of your death after the renewal, your beneficiary can claim the death benefit.
- Tax Benefit: You can enjoy a tax benefit on premium payments under the Income Tax Act, Section 80C.
- Added Benefits: A leading insurance provider offers different premium pricing for women. This can further reduce the premium cost. If you go for a large sum assured, that can often get you an extra discount on the premium payable. Besides, if you buy the plan at an early age, you can sometimes access lower premium rates.
Why Is Term Insurance Important?
Since life is unpredictable, you should always support your family with a financial backup. Single women who are the only earning members often need to take loans to finance big goals. If this causes debt accumulation, a term plan can help the loved ones pay off the debt easily in the absence of the female breadwinner. The plan can also protect the beneficiaries against inflation and help finance the education expenses of the insured's siblings and the medical expenses of the parents.
Single women often find it difficult to save enough during their working years to finance future emergencies and eventualities. Term insurance can be a safety blanket by providing a lump-sum payout during times of financial crisis.
