Life or health insurance: which is better for women?


Investing in life and health insurance is a conscious decision to mitigate risk and protect you and your loved ones.

By Nayan Ananda Goswami, Manager – Group Sales & Services and Retail Sales at SANA Insurance Brokers Pvt. ltd.

Death and ill health are an inevitable part of the circle of life. Investing in life and health insurance isn’t really an “either or not” question; rather, it is a conscious decision to mitigate risk and protect you and your loved ones if and when misfortune strikes in both situations.

Women who believe in smart financial planning for a secure future should ask themselves, “What plans should I invest in so that my family and I can be assured of financial security and well-being during my lifetime and even after I’m gone. ?”. Life insurance and health insurance are assets that serve the purpose; albeit in different aspects. A more meaningful approach to the question, “Which is better for women – life insurance or health insurance?” would be to first understand the structure of the two instruments and then assess the advantages offered by each.

Life insurance: your legacy without debt

Life insurance is like a promise you make to your family that their financial needs will be taken care of even when you are no longer, or that you will have enough capital to help you get through retirement and old age without aid. There are a few categories of life insurance to consider. One is pure term plans that grant death benefits to the beneficiary in the event of an unfortunate death. The other is whole life plans (like ULIP, Endowment, etc.), which is a smart way to multiply your money in your youth and enjoy the benefits in old age, or leave a corpus behind for the future. education, marriage or any other family element of your child. financial obligations upon your death. The bereaved family would struggle to come to terms with the loss of a loved one.

With a life insurance investment, at least the regular income gap can be filled to a large extent, especially if the wife is the primary breadwinner. Even in the case of women who do not have the alpha responsibility of supporting the household, buying a unit-linked insurance plan will mean a good rate of return on the premiums invested. Life insurance in India is relatively cheaper for women than for men as their life expectancy is longer. In addition, premiums paid for life insurance are eligible for tax benefits up to Rs 1.5 lakh under Section 80C of the Income Tax Act 1961, which means that women can save this money and invest it more.

Health insurance: Your well-being promise

Health insurance is the financial safety net you offer yourself and your family members against rising medical costs. Accidents can happen at any time and serious illnesses are on the rise among women. Dealing with the cumulative expenses of on-call procedures, OPD fees, hospitalization, diagnostics, medications, consultations, etc., would become unbearable. For a nominal premium amount, you can obtain a substantial sum insured that covers the medical expenses of all policyholders. Of course, there are key factors to consider like age, past and present health, lifestyle choices, current and future health care needs, and more. before deciding which health insurance plan to choose.

According to the plan, it would cover the costs of treating multiple serious conditions, which would effectively mean less strain on the family’s personal savings. Health insurance premiums also entitle you to tax deductions up to Rs 25,000 (Rs 50,000 if you are aged 60 and over, additional Rs 25,000 if you pay a health insurance premium for your parents of under 60 and additional Rs 50,000 if you pay the premium for parents who are elderly) under Section 80D of the Income Tax Act.

So what’s better?

For women in their twenties who have no financial responsibilities or dependents, health insurance might be first in order of priority over life insurance because it is an unquestionable investment regardless of age. In a few years, when you’re advancing in your career or planning to start a family, you might consider taking out a whole life plan that offers a decent return on investment, or a term life insurance policy that benefits your candidates. Keep in mind the affordability factor, your life stage, company sponsored insurance if applicable, etc. when planning your investment.


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