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5 reasons why working women need a life insurance policy


5 reasons why working women need a life insurance policy


India, where the women workforce is a major contributing force to the country’s economy. There are many families where the women are the sole breadwinners. Women also occupy the top and senior positions in many organizations. While this will make anyone proud, it is always important not to ignore its impact on their personal life.

If a situation where the sole earning member of the family was to pass away suddenly, it could drastically impact their family members with the risk of an uncertain future. To avoid such situations, having a life insurance policy is always better. If you are a working woman, read more to know why you should invest in life insurance.

life insurance policy

What is life insurance?

A life insurance policy is a type in which the insurer pays the insured’s family a sum. This sum is known as a death benefit. Suppose the policyholder were to pass away during the term of the policy. In that case, the insurer would pay the death benefit to the policyholder’s beneficiaries. Usually, the insured’s immediate family.

Why do working women need life insurance?

If you are a working woman who is considering investing in life insurance, listed below are reasons why you should:

1. The future of your child

For any mother, the well-being of her child will be her utmost priority. This is more emphasized when the mother is a working woman. Providing a good education to her child, sending them abroad for further instruction, and planning for their marriage are some of the concerns a mother always has. If the mother were to pass away suddenly, it could leave her with an uncertain future. This is why life insurance can help secure your child’s end without any hassles. The death benefit would help in specifically securing the future of your child.

2. Financial future of your family

If you are the sole earning member of your family, all the household’s major expenses depend on your income. It could severely impact your daily costs even if you fall sick and do not go to work. However, if you pass away suddenly, your family could end up staring at a financially uncertain future. With depleted savings and no other source of income, they could be forced to borrow money and increase their debts. Life insurance will help them provide financial assistance to manage their essential expenses.

3. Recovering savings

Medical emergencies are inevitable and unpredictable. If you are the sole breadwinner of your family, you could spend a lot on medical expenses. This could impact your savings greatly if you did not have health insurance during the emergency. Depleted savings could have a negative impact. What could make it worse is your untimely demise. That could leave your family with depleted savings for expenses. However, the payout from your life insurance could help recover those savings and keep them financially afloat.

4. Adjust to the cost of living

Due to the rising cost of living, the day-to-day expenses of every household are heavily impacted. This can be a financial burden if the home has only one earning member. This could mean lower savings if most of the income is spent on household expenses. If the earning member suddenly passes away, the family could be left in financial turmoil because of the cost of living and lower savings. The sum assured from your life insurance policy could help you easily adjust to the rising inflation and maintain healthy savings for your loved ones.

5. Financial independence for your partner

As an earning woman, you would be the person handling all the finances of the household. While this could be helpful for your partner, it could also be disadvantageous if you were to pass away suddenly and the savings were insufficient for your partner’s future. In such situations, your life insurance cover will help provide the financial independence your partner needs. The money would help him manage expenses and plan a secure future.

These are just a handful of reasons why you, as a working woman, should opt for life insurance. If you want to know the types of life insurance policies you can invest in, contact your insurance advisor.

Eula Boone

I have written professionally since 2010 and have been an investor since 2015. My finance blog, economydiva.com, is one of the most visited blogs in the world, with more than 3 million readers a month. I love sharing what I know about investing, saving, and managing money and providing practical tips on how to be a smart and savvy money manager.