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TomorrowMakers ™

Financial Planning

Taylor & Francis Group

Best ways to improve financial security for women

In India, there is a lot of scope for women to further cement their financial security. For this to happen, it is important women are aware of the various options they have.
 

Women are often considered better at saving money and planning household finances when compared to men. However, Indian women lag behind their male counterparts when it comes to financial security. Instances of women choosing insurance as an option for financial security are also less. A recent IRDAI report tells that the ratio of women with life insurance cover compared to men is merely 20:80 for the government, and 21:79 for the private sector.

Due to changing lifestyles, the unpredictability of life, and the increasing contribution of women to household income, it is imperative for women to secure their financial future and that of their loved ones by buying insurance. Here are some forms of insurance that women need, to improve their financial security.

Buy a life insurance cover

A life insurance plan is the most basic insurance that you need to secure the financial future of your family.  If you are a homemaker and your husband is the sole breadwinner in the family, you must make sure that your husband buys a life insurance cover.

If you are a working woman, you must definitely buy a life insurance policy for your own self because in this situation, since you are sharing the responsibility of household expenses, it is only logical that you share the responsibility of financial protection too. Hence, even if anything happens to you, the pay-out your family will receive will make sure that your husband doesn’t feel the sudden brunt of managing household expenses all on his own.

In case you are a working single mother, then it goes without saying that you need to get a life insurance cover as soon as possible to protect your children.

In case you are a single woman with no dependants, the life insurance pay-out could be exactly what you need to pay off loans in the future so you cannot do without it.

To know more about why women need life insurance, click here.

Be prepared for future health threats with health insurance

While the increasingly changing nature of our lifestyles poses health threats to both men and women, women in particular seem to be affected a great deal more, with certain major non communicable diseases on the rise. As per latest research, 47, 587 women died of breast cancer alone in India in 2013. Another study revealed that 3 out 5 Indian women under the age of 35 are at a risk of getting affected by heart disease. The cost of treatment of these diseases is very high and it is not possible for a middle class person to afford them as their bills run into several lakhs.

Related: Critical illnesses and their financial implications in India [Infographic]

This is not to scare you but to make you realise the importance of health insurance so that you are always prepared for any health related eventuality.  A health insurance cover will make sure your husband and/or family members do not have to worry about arranging funds for your treatment, should you suffer from a serious illness. To get an idea about the high costs for the treatment of certain critical illnesses, click here.

Secure your children’s future with a child plan

As a parent, your child’s happiness is of utmost importance. You want to make sure that your child’s future is secure and all his or her dreams come true. However, with ever rising inflation and high cost of education, this too becomes difficult for parents. It is therefore important that you secure the financial requirements for your child’s career by taking a child plan.

You can either take a child education plan or a child insurance plan, depending on your needs. To know how they differ, click here. Depending on the plan you take, you can fund your child’s studies at any stage of his/her education- primary, secondary, or higher. You can use it for fulfilling his or her dream of studying in an Ivy League college. You can also use it for other purposes too like your child’s marriage, etc.

Spend your golden years in peace with a retirement plan

While your husband might have a job that gives him pension after retirement or might have bought a retirement policy, this may not be enough for the both of you. Your monthly income will decrease while inflation will continue to rise. It will therefore become very difficult for you and your husband to maintain the same lifestyle that you had before retirement.

You need to make sure that you also have a source of income post retirement by buying a retirement plan. Also, since wives are usually likely to outlive their husbands, a retirement cover will make sure that your expenses are well managed after your husband is no more.

Conclusion:

Since more women are becoming breadwinners for their families, along with their husbands, financial security is something they cannot and must not live without. Insurers seem to be realising this as well, which is why they are coming up with insurance policies specifically designed for women. These insurance plans are available to cover and secure requirements at different stages of your life. You don’t need insurance just for your family and children’s needs, but also for your own needs as an individual.

Related: Insurance policies to protect what's important to you [Infographic]

 
 

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