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Types of Insurance Policies Every Woman Must Have
When it comes to availing insurance, there’s a general feeling that only the male breadwinner in the family requires them. That's not the truth in reality. Especially, in a fast-changing environment, where there’s an increased participation of women in the workforce. It is a must to have an insurance especially in these difficult times. So, what are the types of insurance policies one can opt for?
Well, let’s find out.
Health Insurance
Given the current state of affairs, health insurance has become more of a necessity, than a desire. Not only does it prevent out-of-pocket expenses, but it also ensures that crucial financial goals are on track.
Today, many women-specific health insurance plans are available in the market. So, you can look forward to these plans that are tailor-made to meet your requirements.
You can either buy an individual or a family floater plan that provides coverage to all members. With the rising medical inflation, it makes sense to accentuate coverage by opting for a top-up plan, the benefits of which kick in after the deductible mentioned in the policy gets exhausted.
It’s best to opt for a critical illness plan as the treatment costs for critical diseases such as cancer, stroke, kidney failure, etc. are pretty high.
Term Life Insurance
Buying a term life insurance plan is a must, especially as it financially protects your beloved ones. It is the simplest form of life insurance that offers a lump sum after the demise of the policyholder within the policy term. It provides substantial coverage at an affordable premium and ensures that the family remains financially independent.
Buying a term plan early has multiple benefits including lower premiums. You can either buy a pure term plan or a term policy with a return of premium feature that returns all the premiums, in case you outlive the policy term. However, the premium amount for the latter is a little higher.
Unit-Linked Insurance Plan
If you are looking for life cover and building a corpus simultaneously for lifetime goals such as your child’s higher education, their marriage and your retirement, then a unit-linked insurance plan (ULIP) should be your preference.
Offering dual benefits of insurance and investment in a single policy, ULIPs allow you to choose from different funds as per your risk tolerance and goals. They also allow you to switch between funds if needed.
New-age ULIPs are competitively priced and you can easily hit two birds with one stone by investing in them. However, make sure to remain committed for the long-term to make real gains from ULIPs.
Annuity Plan
Annuity plans are a prudent way to secure your retirement and ensure you live a stress-free retired life. There are two types of annuity plans - immediate and deferred. In the former, you start receiving pension immediately, whereas in the latter, the pension is paid after a certain number of years.
In annuity plans, you invest a lump sum amount, which the insurer invests on your behalf and pays back the returns generated. It’s better to opt for a deferred annuity plan as your money gets more time to grow and compound.
The lynchpin of personal finance is meticulously planning for an insurance portfolio by quantifying requirements and ensuring to secure your future.