There's a popular saying, "Protect your most precious assets with insurance." What's more precious than your life and health? Nothing I guess. So why not avail life and health insurance to protect your most precious assets?
In most cases, women are not breadwinners of their family. So why do women need insurance? The death of a woman (mother/wife) is not just a financial loss. It leaves a permanent void in the family. But, if you (woman) avail a life insurance plan, your family gets the death benefit on an untimely demise. Your children get a better education and enjoy a higher standard of living, if you avail life insurance.
Your husband might have already included you in a family floater health insurance plan. Your boss might have covered you under a Group health insurance plan. It's still a good idea to have an individual health insurance plan. Women's health needs are different from men. Many Women in India don't give much importance to their own health. A health insurance plan might just force women to take care of their health.
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The Government knows the value of insurance and has given you tax deductions on insurance plans to save tax. Let's take a look at how insurance can save tax for women.
Among all life insurance plans, term life insurance is the most important. Term life insurance is a pure risk protection plan. You pay a premium for a sum assured in a term life insurance plan, for a fixed time period called tenure of the plan. If you (insured) die within the term of the plan, your nominees get the death benefit (sum assured). Term life insurance plans have no survival benefits.
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On an untimely demise within the term of the plan, your nominees (husband + kids) get the death benefits. This money can be used to give your kids a better life.
The premiums you pay for a term life insurance plan, enjoy a tax deduction under Section 80C of the income tax act, up to Rs 1.5 Lakhs a year. The death benefits are tax-free.
Endowment life insurance plans give you the twin benefits of Insurance + Savings. ULIPs give you the twin benefits of Insurance + Investment.
The premiums you pay for endowment life insurance plans and ULIPs enjoy tax deductions under Section 80C, up to a maximum of Rs 1.5 Lakhs a year.
SEE ALSO: Insurance Policies For Women
2. Health Insurance enjoys Section 80D benefits
Even though you may be covered under a family floater health insurance plan (a health insurance plan which covers the entire family for hospitalization expenses up to a particular sum assured), it's good to have your own individual health insurance plan. Some of these health insurance plans also cover maternity hospitalization.
A study conducted by a prominent institution has shown that more than 70,000 Indian women died of Breast Cancer in 2012. This number could go up to 76,000 by 2020, increasing the need for a Cancer Insurance Plan.
Studies have shown that 70-90% of all cancers are due to environmental factors and not genetics. Now, cancer requires expensive medical treatment. Cancer treatment can cost anywhere around Rs 2-20 Lakhs. Don't you think a Critical Health Insurance Plan is important?
Premiums paid on health insurance plans enjoy tax deductions up to a maximum of Rs 25,000 a year under Section 80D. Senior citizens enjoy tax deductions up to a maximum of Rs 30,000 a year.
So Women, insure yourself with life insurance and health insurance plans. You not only leave a safety net for yourself and kids, you also save on tax. Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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