Life insurance is one of the most cost-effective ways for women to protect their loved ones, besides providing for their own future. But like men, women tend to be under-insured because they don't update their insurance needs with time. A life cover is bought to address a situation that can change as you age or as your dependants increase. We look at the instances when you should reassess these needs.
Before You Update |
|---|
| Points to consider while reassessing life cover |
| Your existing life cover and the duration that it will last. |
| The insurance shortfall that you need to cover and the duration for the same. |
| The premium commitment that you will need to service the new insurance. |
| The flexibility that the new insurance policy offers to extend or modify the scope of cover with time. |
If You Are Part Of A Two-Income Family: Today, a significant number of married women bring home pay cheques. The double-income family depends on both pay cheques to make ends meet. What if you met with an eventuality? Would your children be able to achieve their education goals? Would your family suffer a severe financial loss? Adequate life insurance can replace your income, remove uncertainty and help guarantee your family's financial security.
If You Are A Full-Time Homemaker: Nearly three out of every five married women are home-makers. This is as much a partnership as the two-income family because it takes the efforts of both members to make the household function. Your service, in many ways invaluable, is worth tens of thousands of rupees a year. So you need to consider how your family will manage financially without you.
If You Are A Single Woman Heading A Household: Chances are that you have an inadequate life cover despite huge financial responsibilities, if one were to go by industry studies. As a single parent, you may be the sole breadwinner for your children. So your need for a cover is more crucial than in a dual-parent household, where even if one parent dies, the source of income doesn't.
If You Are A Single Woman: Whether you are single, never married or divorced with no kids, you need life insurance because you may still have responsibilities like loans or dependent parents. Besides, a life cover can protect your insurability as you get older. So if you do marry, it will help protect your husband and, possibly, children. If you decide to remain single, it can accumulate cash to help provide a secure retirement. The accumulated wealth comes with tax advantages at the time of maturity, which can supplement your income.
Remember that insurance helps protect your family, replace lost income if you die and provide for retirement. If planned well, it pays off mortgages, funds education in the absence of the income earner, and guarantees that dependants don't suffer a severe drop in the standard of living.
