Term Insurance for Women Entrepreneurs: A Crucial Investment for Your Business and Family’s Security

These days, life’s uncertainties have become even more uncertain. Not only is there no guarantee on lifespan, but also livelihood. One day, you are on top of the world, and the next, you may not be here at all. Such is life, and that is why you need to be prepared.

One of the surest ways to prepare yourself for the worst and hope for the very best is to purchase term insurance plans that offer relevant benefits. These are particularly helpful for women entrepreneurs. Let’s find out how and why.

What are term insurance plans?

Term insurance plans are a variant of life insurance policies. These are the most affordable and desirable insurance instruments in today’s uncertain economy for young and old, male and female alike.

Term insurance policies are available for flexible policy tenures ranging from 10 to 100 years. The sum assured for these policies can be as low as 25 lakhs or rise to 5-10 crores based on your requirements. The best part, however, is the low premium rates for these benefits.

Term insurance plans come in many forms to offer various benefits, which are as follows:

• Decreasing term insurance plans – They decrease the sum assured annually, and the insurer uses the difference to settle your debts with registered lenders.
• Increasing term insurance plans – They increase the sum assured annually, and the raised amount is suitable for beating the rate of inflation.
• Regular or level term insurance plans – These are unchanging policies that offer the same sum assured and additional benefits that you purchased originally.
• Term insurance with Return of Premium – They are unique term plans that offer maturity benefits if you survive the policy tenure. This concept is mostly uncommon with term insurance plans unless you have RoP.

You can also opt for these term insurance plans by paying a lump sum one-time premium that entitles you to the benefits. Based on your financial plans and future responsibilities, and the plans of your beneficiaries, you can choose the type of policy that best suits you.

How term insurance plans benefit women entrepreneurs?

Term insurance plans are very helpful solutions for young entrepreneurs and women. There are several advantages to consider, including term insurance tax benefits, which are as follows:

1. Term insurance plans are very affordable. These are excellent solutions for women entrepreneurs to provide financial protection for loved ones without a lot of financial stress.
2. Term insurance tax benefits under Section 80C of the Income Tax Act are applicable if your annual premiums are less than INR 1.5 lakhs.
3. Term insurance tax benefits are also applicable on the death benefit and maturity benefit under Section 10(10)D of the Income Tax Act.
4. If you have riders on your term plans, such as critical illness or accidental death cover, then you are eligible for term insurance tax benefit under Section 80D as follows:

• Tax exemption up to INR 25,000 is paid in premiums if you or the insured is below the age of 60.
• Term insurance tax benefits and exemptions up to INR 50,000 in premiums if you or the insured is above the age of 60.

1. Decreasing term insurance plans allow you to settle a majority of personal and business loans. Therefore, after your demise, even though your beneficiaries receive a smaller settlement, they are partly or completely devoid of such financial burdens.
2. Increasing term insurance amplifies the coverage. The longer you live, not only can you build your business and secure a nest egg for your loved ones, but you can also leave behind a substantial amount in death benefits to meet their requirements.
3. If you survive the policy tenure with term insurance with return of premium, you will receive all the premiums paid in a lump sum amount. As an entrepreneur, you may invest the amount to expand your business or tackle financial setbacks with ease. You can also reinvest the money in term insurance plans, especially single premium policies, to sufficiently cover your loved ones’ futures.

The boons of term insurance for women entrepreneurs are plenty. Apart from the advantages listed above, you also need to consider how term insurance plans help support the hopes and dreams of those you love and leave behind after your death. It is truly helpful to have a suitable term plan, especially from a reliable insurer, to provide you with peace of mind.

Conclusion

Women entrepreneurs have major responsibilities, but the opportunities may not be the same. The earning potential also differs, which is why finding affordable life insurance solutions, such as life insurance plans, can be of great help.

Aside from the benefits of different term insurance plans, term insurance tax benefits play a major role in ensuring your money is well invested in these policies. Without excessive financial stress, you can plan to protect your loved ones and your business sufficiently.