Homemakers to Entrepreneurs: Key insurance factors for Women

As more women take on diverse roles in both professional and personal spheres, understanding the nuances of purchasing life insurance becomes increasingly essential

Srinidhi Shama Rao

Srinidhi Shama Rao, 

Chief Strategy Officer, 

Aegon Life Insurance

Mumbai, March 7, 2024: Life insurance is a vital financial tool for ensuring long-term security and peace of mind, particularly for women in India. As more women take on diverse roles in both professional and personal spheres, understanding the nuances of purchasing life insurance becomes increasingly essential. From navigating policy options to considering unique familial responsibilities, there are several crucial factors that women need to bear in mind when purchasing life insurance in India. Let’s explore key considerations to empower women in making informed decisions about their financial future and protection.

Active participation in Financial Planning: When it comes to financial planning, often husbands or fathers take the lead. Consequently, issues specific to women often remain overlooked. With more women taking on significant roles as providers for their parents, siblings, children, and themselves, there arises a necessity to prioritize sufficient insurance coverage. This coverage should aim to support those financially dependent on them. Moreover, it's crucial for women to proactively plan for medium to long-term savings, empowering them financially across different life stages.

Be aware of the women-specific benefits: Many women remain unaware that life insurance premiums are typically lower for women than men. Additionally, few are informed about the option to purchase insurance under the Married Women's Property Act, allowing the married couple to nominate the wife and/or children, or for the women to nominate her children as beneficiaries, ensuring financial security for their offspring in the event of their absence. This is an important feature as it ensures that the proceeds of the policy will only go to the beneficiaries and no one else.

Life insurance for homemakers: Stay-at-home moms/homemakers often overlook the importance of purchasing insurance. Since they are not the primary earners in the household, they may assume that insurance is solely necessary for the male breadwinner. However, managing a household is a significant responsibility, and in their absence, both emotional and financial strains can arise for the family. Therefore, it is crucial to educate non-working women and their families about the necessity and advantages of insurance coverage.

Self-employed can now cover their venture and dependents: Self-employed individuals may encounter difficulties in obtaining life insurance due to the absence of a conventional salary slip. Traditionally, they were evaluated based on income tax returns and computation of income documents. However, these documents are often unavailable, leading to a high rate of rejection from insurance companies. Consequently, many self-employed individuals are discouraged from pursuing life insurance coverage. This is also now possible with the advent of AI and tools like Account aggregator which act as a force multiplier for providing insurance to the self-employed, so, self-employed women can make the best of this opportunity to protect their ventures and dependents.

Vital Role of Life Insurance for Single Mothers: Having adequate life insurance coverage is crucial for single mothers as it can safeguard their children or dependents’ financial future. Without adequate coverage, children may face financial challenges and vulnerability in the unfortunate event of their mother's passing. Life insurance can provide a sense of security by offering financial support to cover living expenses, education costs, and other necessities, helping to mitigate the impact of the loss of income. Therefore, single women must prioritize obtaining life insurance to safeguard the well-being of their dependents and provide peace of mind for themselves.

Open communication with nominee(s): Furthermore, alongside securing their own insurance coverage, it is imperative for women to be well-informed about the existing insurance arrangements of their family members, typically their spouse or parent/s. Often, women are designated as nominees in the life insurance policies of their family members or spouse without their knowledge. Lack of awareness regarding these details can lead to complications when filing a claim, if such a time should come. It is essential for every household to establish open communication and share information with nominees, ensuring they are acquainted with the insurer and its procedures.

In essence, whether women are increasingly achieving financial independence, growing their business, or assuming primary caregiving and household management roles, it is crucial for them to recognize the importance of securing their future and to take proactive measures to align their savings and financial protections to suit their needs.

About Aegon Life:

Aegon Life is Digital India's life insurance company and pioneered the online Term Insurance plan in India. As India's only 100% digital life insurance company, it's building innovative solutions to financially secure every Indian household and provide greater clarity, transparency, and superior customer experience.

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