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Business News/ Money / Personal Finance/  Mother's Day 2024: 6 crucial ways term insurance can help working moms in financial planning
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Mother's Day 2024: 6 crucial ways term insurance can help working moms in financial planning

For working mothers, term insurance holds paramount importance in safeguarding the future well-being of their loved ones. It acts as a safety net, ensuring that in the absence of the primary breadwinner, the family's financial needs are adequately met.

Mothers, be it working professions or homemakers, are the unsung heroes of many households.Premium
Mothers, be it working professions or homemakers, are the unsung heroes of many households.

Mother's Day is a truly special day to celebrate the amazing women who have played an irreplaceable role in our lives. Amidst the daily balancing act of career aspirations and family responsibilities, the critical need for securing their financial future often takes a back seat. Despite the gradual increase in insurance buyers, the proportion of women availing themselves of this essential protection remains disproportionately low. This underscores not only a gap in workforce demographics but also highlights a pervasive perception among women that life insurance is not a pressing necessity.

Mothers, be it working professions or homemakers, are the unsung heroes of many households. The working mother adeptly manages both professional commitments and familial duties with grace and resilience while the homemaker juggles varying responsibilities within the home to ensure that their families are taken care off. They serve as pillars of strength, providing unwavering support and love to their families. However, amidst the daily whirlwind of activities, the critical aspect of ensuring financial protection for their loved ones can sometimes be sidelined.

In the realm of financial planning, term insurance emerges as a silent yet formidable shield, offering comprehensive protection against life’s uncertainties. Unlike other forms of insurance, term insurance provides pure protection coverage, ensuring that in the unfortunate event of the policyholder's demise during the policy term, their beneficiaries receive the predetermined sum assured. This lump sum payout serves as a crucial lifeline for the family, offering financial stability and security during trying times.

>>Mother’s Day 2024: Health insurance checklist for lifelong financial wellbeing

Safeguarding the Future: For working mothers, term insurance holds paramount importance in safeguarding the future well-being of their loved ones. It acts as a safety net, ensuring that in the absence of the primary breadwinner, the family's financial needs are adequately met. Whether it's covering daily expenses, children's education, or servicing outstanding debts, the lump sum payout from a term insurance policy alleviates financial burdens, allowing the family to maintain its standard of living and pursue future aspirations. This underscores the essence of being #FutureFearless, where individuals embrace proactive financial planning to navigate life's uncertainties with confidence, knowing that their loved ones are protected.

Tailored Financial Protection: One of the key advantages of term insurance is its flexibility and customisation options, enabling working mothers to tailor their coverage according to their specific needs and financial goals. By accurately assessing their family's lifestyle, expenses, outstanding debts, and long-term aspirations, mothers can determine the optimal sum assured that adequately addresses their loved ones' requirements. Term insurance ensures affordability, allowing mothers to secure substantial coverage at affordable premiums, thus striking a balance between protection and budgetary constraints.

Planning for the Uncertanity: Life is inherently unpredictable, and while no one likes to dwell on worst-case scenarios, prudent planning for the unexpected is paramount, especially for working mothers. Term insurance provides peace of mind, knowing that irrespective of life's uncertainties, their family's financial security remains safeguarded. Whether it's ensuring continuity of education, preserving the family home, or securing a comfortable retirement for aging parents, term insurance empowers working mothers to plan for the future with confidence and assurance.

>>Mother's Day 2024: 5 actionable steps to manage finances for a mother caring for both ageing parents and children

Managing Debts: In today's world, women are achieving remarkable financial independence, often relying on loans to fulfill their aspirations. However, unforeseen circumstances could leave their loved ones burdened with these debts. By investing in a term insurance plan, working mothers ensure that they can manage their debts independently, leaving a lasting legacy of security and care for their family.

Retirement Planning: With the constant rise in inflation rates, retirement planning has become increasingly critical, especially for working mothers. It's essential for them to secure their finances before retiring. One effective method is to opt for a term insurance plan with a maturity benefit. This allows them to accumulate a substantial corpus over time, providing a lump sum amount upon maturity, thus ensuring financial stability during retirement.

Tax Benefits: As more women take on significant roles in the workforce as earning members, tax planning becomes imperative. Purchasing term insurance can be a strategic move for working mothers to optimise their tax planning. Premiums paid towards term insurance, as per Section 80C of the Income Tax Act 1961, are tax-exempt. Furthermore, the proceeds from these plans, whether through maturity benefits or death payouts, also remain tax-free, providing additional financial advantages for working mothers.

>>Mother's Day 2024: 5 best financial gifts for your mother

This Mother’s Day, let's honor the unwavering dedication of working mothers who wholeheartedly commit to nurturing their families while pursuing their career goals. Whether women are achieving greater financial independence or assuming primary roles in caregiving and household management, it's crucial that they recognise the importance of securing their future. They must take proactive measures to align their savings and financial protection with their evolving needs and responsibilities. This underscores the essence of being Future Fearless, where individuals embrace proactive financial planning to navigate life's uncertainties with confidence.

 

 

Lalitha Bhatia is Chief Operating Officer, Ageas Federal Life Insurance.

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Published: 12 May 2024, 10:46 AM IST
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