Guide to Choose a Good Term Insurance Policy for Women in India

If you thought that life insurance, or any form of insurance for that matter, was a domain under men’s jurisdiction only, it’s time to rethink. Perhaps even time to replace the old and outdated thought process of Indian society. Insurance is not just for men, who are the primary breadwinners in a family. Women have equal rights to seek insurance coverage for their financially stable future. Here we discuss the best term insurance plan in India 2022 for women so that they too can come forth and secure their financial interests.

Why Women Need Term Insurance in India

A recent report presented by the Insurance Regulatory Development Authority of India (IRDAI) brought forth some shocking facts. It highlighted that out of the 28.2 million life insurance policies purchased in the financial year 2017-18, 19.1 million were issued by men and only 9 million by women. This clearly indicates that we continue to live in a society where women might be striving for financial independence but are still not forthcoming when it comes to insuring their financial interests.

Now, this is the same Indian society that reports thousands of cases every year of divorced women, single mothers, or widowed women. Who would secure their future interests and those of their children or other family members they care for? This is why it is important to count on insurance at a time when there’s absolutely nobody or nothing to fall back upon.

Term insurance is one of the best life insurance products to opt for women since it provides an assured financial stability for them to run their household without worry in the absence of a male member.

How to Choose the Best Term Insurance for Women?

When it comes to safeguarding your financial interests for the future, you need to be extra careful. Here are some factors to bear in mind that would help you make an informed decision when buying term insurance for women:

1. Take the rate of premium into consideration: Know that as a woman when you’re buying a term insurance policy for yourself, you might need to pay the premium (even on a monthly basis) all by yourself, especially in the absence of a spouse. It is therefore important to consider the rate of premium payable and the frequency of payment before purchasing a term insurance plan. Make sure that the policy you buy provides adequate coverage for the future to bear all financial goals of your dependents (children/old parents) at affordable premium rates.
2. Look for a plan that will continue to support your family in your absence: In case you are a single woman, it is anyway difficult to financially manage a household with dependent members in the absence of another earning member (spouse). You therefore need to ensure that your family’s expenses continue to be managed even later on in your absence (in case of an untimely unfortunate incident or death). Hence, choose the best term insurance plan in India for women that adequately covers your household financial goals when you’re gone.
3. Do include a rider benefit in your plan: The best part about buying term insurance plans in India is that you can add rider benefits or add-on covers to the base insurance policy and enhance its coverage. When buying term insurance for women, make sure to include one such rider benefit, for instance, the Critical Illness Cover. This is because women can be susceptible to a number of health conditions in the future, namely breast cancer, cervical cancer, reproductive issues, and the like. A term insurance rider would be of much value then.

Top Term Insurance Companies in India for Women

If you’ve made up your mind to buy term insurance, here are some of the best term insurance plans in India 2022 exclusively for women:

Name of the Plan	Benefits Offered for Women
SBI Life Smart Women Advantage	Add-on rider benefit covering additional expenses on pregnancy-related issues; Triple Benefit Cover also included in the plan
Aegon Religare Term Online Policy	Coverage of up to Rs. 1 crore for women provided under the plan
Tata-AIG Wellsurance Women	Lump sum amount provided for certain critical illnesses such as kidney failure, heart problems, etc.; daily cash hospitalization benefit offered
Bajaj Allianz Critical Illness Cover	Coverage provided for at least 8 critical illnesses in women, namely breast cancer, uterus cancer, vaginal cancer, and the like

How Much Would a Term Insurance Plan for Women Cost in India?

While it’s wise to consider the cost of buying a term insurance policy for women before buying one, it is equally important to bear in mind the purpose behind your purchase. Since most Indian households run on the sole income of one spouse (generally males/husbands), the entire financial responsibility for the household falls on one set of shoulders.

Now, in case of an unforeseeable and untimely event causing the death of the husband, their female partner and the other dependents in the family are left hapless. In such cases, it helps if the woman of the household too has a significant income to contribute to the family in these distressed times. This can be done by way of investing in term insurance for a specified term.

For instance, you choose to purchase the best term insurance plan in India among a host of options for say Rs. 1 crore for a woman aged 30 years for a total term of 30 years. Now, the approximate cost of buying such a plan could be anywhere between Rs. 6,500 and Rs. 10,000 annually. Besides, an insurance coverage of Rs. 1 crore would be secured for the woman to come of use in times of need in the future (to meet her own financial goals and those of her children.