By Rhishabh Garg
The Indian insurance industry has taken significant steps in recent years to enhance the accessibility and affordability of term insurance for women. Tailored solutions are continuously being developed to address the diverse needs of both homemakers as well as working women effectively.
As homemakers add financial value to their households and the future of their dependents need to be secured, independent term plans are a big safety net for them. Historically, homemakers relied on their spouse’s financial standing for a life cover, often resulting in inadequate coverage. In absence of tangible financial income, homemakers’ chance at financial protection was a shared joint life cover taken by their spouse.
New-age independent term homemaker plans have eliminated this dependency, allowing homemakers to independently purchase coverage of up to Rs 1 crore with flexible prerequisites, such as an annual household income of Rs 5 lakh and a minimum educational qualification of 10th/12th pass.
New-age products demand new-age underwriting practices, which has been made possible by technological innovation. Understanding mortality and morbidity rates is essential, as they directly impact term insurance premiums. Women’s statistically longer life expectancy results in decreased policyholder mortality risk, translating into tangible benefits with significantly lower premiums. Given that women have lower mortality and morbidity rates compared to men, the premium is 30% cheaper.
Insurance is a product that does not offer instant gratification. A term insurance being a pure protection product is often seen as a cost and not an investment. But term insurance plays a pivotal role in empowering women economically and
Read more on financialexpress.com