As a woman in your 30s, opting for the correct term insurance plan secures your financial future while effectively managing your growing responsibilities. Therefore, you must look for a plan offering a high sum assured, which should be at least 10- 20 times more than your annual income to cover your children’s education, home loans, and other long-term needs.
You must also choose a policy that considers factors such as accidental coverage, affordable premiums, and more. In this article, we find out how to choose the right policy for women in their 30s.
The Need for the Right Coverage for Women in Their 30s
Once you reach your 30s, you should not avoid buying the best term life insurance plan for your future. Before purchasing a plan, you must assess what an ideal cover is for you. For your and your family’s needs, the amount of your term plan insurance coverage should be sufficient to replace your entire net future income.
Using the income replacement method, you can determine the right coverage amount, where the current annual income is multiplied by the years left for retirement. For instance, if you are a 35-year-old working woman with a 10 lakh yearly salary, you must choose your term life insurance plan’s cover as a minimum of 2.5 crores (assuming retirement at 60 – 10* 25 (years left)).
However, this amount will change if you have financial responsibilities, such as a home loan. So, if you plan to take a home loan of 40 lakh, add this amount to your policy cover.
The Benefits of Term Life Insurance in Your Thirties
Here are some of the benefits of purchasing your term insurance in your 30s:
Dependents Financial Stability
The 30s are a time when either you are planning for a family or have one, and therefore, you must be prepared for their aspirations and dreams. Hence, getting a term life insurance policy will ensure your family is financially protected in case you are not there.
Lower Premiums
If you start early, you won’t have to pay a lot of premiums. This is because people in their 30s are healthy with no chronic illnesses.
Easy to Purchase
Buying the best term life insurance is no longer tedious; you only have to compare the premiums and features of different plans and make the best decision.
Better Life Cover
As age is on your side, buying term life insurance in your 30s will yield better life coverage. The same won’t be the case when you grow old.
Income Tax Benefit
A common question: Is the term insurance claim amount taxable? To answer, besides financial protection, a term life insurance can save tax under Section 80c, and the amount at maturity is tax-exempt.
Additions of Riders
Many insurance companies also offer to add riders with an added security layer, including coverage for critical illnesses, disability, or accidental injuries.
Factors to Consider Before Opting for a Term Life Insurance Plan for Women in Their 30s
Term life insurance plans are important, and hence, things must be carefully considered before making the final decision.
Coverage Amount
As stated above, decide on the right coverage based on your financial demands, such as children’s education, loans, or future expenses. You can calculate the coverage amount using the method stated above, and as your responsibilities grow, you can increase it later.
Policy Term
Always keep your policy terms aligned with your long-term financial goals. This means the plan should cover you until you pay off your debts or your children are financially independent. To ascertain whether your coverage aligns with your obligations, utilise an online term life insurance calculator.
Addition of Riders
For added protection and security, include riders when purchasing term life insurance in your 30s. Some riders include accidental death, critical illness, such as cervical or breast cancer, or a premium waiver, offering additional protection in case of unforeseen situations.
Health and Occupation
Regardless of whether men or women, occupation and health are crucial in determining the term life insurance premiums. The premium will be high if you have existing health conditions or work in high-risk professions. However, since you are in your 30s, such factors may be less concerning, and you may find an insurance provider offering a good policy at affordable prices.
Different Demographics
For certain groups, like senior citizen women, housewives, or self-employed women, term life insurance plans are often tailored to their financial obligations.
Maternity Benefits
Certain women’s term insurance policies may cover pregnancy-related conditions, including preeclampsia, gestational diabetes, or birth difficulties. With this coverage, women might be able to pay for medical bills or time off from work.
Conclusion
It is impossible to overestimate the significance of insurance, and it is equally vital for women as it is for men. Women’s term life insurance empowers you and gives you and your family financial security and support during trying times. Besides, it also answers the common – is term insurance claim amount taxable question as you get relief under Section 80c.
