Mother’s Day: Protecting Motherhood, 5 Important Insurance Policies Every Mom Needs

by Tarun Mathur

A mother’s life is synonymous with running round the clock, working one after the other and juggling all the responsibilities efficiently to make her family and kids safe and comfortable in every possible way. Undoubtedly, motherhood is the most wonderful experience, but it comes with a lot of responsibilities. However, in the midst of endless to-do lists, financial planning often takes a backseat for moms.

This Mother’s Day, you should consider purchasing adequate insurance coverage for yourself and your family to safeguard against any unforeseen financial difficulties.

1. Health insurance is highly relevantA household practically revolves around a mother so it is important that they make sure every step is taken to take care of her health. Women aged 35-55 have higher rates of chronic diseases such as arthritis, diabetes, high blood pressure and osteoporosis than men. Additionally, they are more susceptible to certain types of serious diseases, such as breast and cervical cancer.

Choosing a health plan with OPD or Outpatient Department expenses can protect you from expenses incurred on doctor’s consultations, telemedical consultations, pharmacy bills, diagnostics and much more.

Similarly, you can opt for a health insurance plan that rewards policyholders for staying healthy. Under this, insurers offer a discount of up to 100% on annual premium to promote the fitness and well-being of policyholders. They also offer incentives for health related activities like walking 10,000 steps, going to the gym regularly, etc. during the policy year and meeting their health standards. This discount can vary from insurer to insurer and, of course, to the extent of health goals.

Similarly, as a woman, you may have specific health needs related to maternity care, reproductive health and preventive health services. Insurance companies allow you to customize your health plan based on your needs and budget. You can also choose a modular health plan to meet these needs.

2. Secure your life with term life insurance– Whether you are a working woman or a homemaker, you must make sure to buy a term life insurance policy with suitable riders at the earliest.

If you are a working mother, a term plan can be counted as a safety net for the entire family. This will protect your income and your family, including your children, if something unfortunate happens.

In the event of premature death of the policyholder, any type of disability, or even a critical illness, the payouts of the term plan help the family to provide funds to pay off the loan (if any) , takes care of the children’s educational expenses, and provide them with a source of income to meet their daily needs.

The premium for term insurance is eligible for tax deduction under section 80C of the IT Act. Additionally, the death benefit paid to the nominee is tax-free under section 10(10D).

As the insurance sector is constantly evolving to meet the needs of every consumer segment, now housewives are also independently eligible to buy a term plan with a sum assured ranging from Rs.50 lakh to Rs.1 crore. Any housewife who is 10th or 12th pass and has a household income of Rs 5 lakh can buy a term policy and secure the future of her loved ones.

Also, considering the affordability factor, term plans are up to 30 per cent less expensive for women as the life expectancy of Indian women is on an average 2.5% higher than that of their male counterparts. This means that the longer a person lives, the better it is for insurance companies as the risk and the chances of making a claim are lower.

3. Comprehensive Motor Insurance Coverage- It is mandatory for all car owners to have third-party insurance, but it is always advisable to opt for comprehensive motor insurance so that it covers damages to the owner’s car as well as third-party liabilities. Additionally, riders should also choose to enhance their safety. Engine protection cover, personal belongings cover and 24/7 roadside assistance are some of the riders that every woman driver essentially needs to enhance the coverage of her motor insurance policy.

If you are a mother who does not drive often, you can opt for a “pay as you drive” (PAYD) motor insurance plan. Under this policy, the policyholder has to pay insurance premium according to the driving frequency. Either you can choose a pre-defined distance slab like 2500 kms or 5500 kms as per your driving requirements, or alternatively, you can also choose other models where the policyholder can discontinue his policy when his car is not in use. can do. reduce the premium.

Wealth creation with investment-cum-insurance products

4. Unit Linked Investment Plan (ULIP)ULIP is a combination of insurance and investment. A certain portion of your premium is set aside to provide life cover for your dependents. If you are a new mother and your child’s higher education and wedding expenses are a few decades away, investing in ULIPs is beneficial. Under favorable market conditions, ULIPs can offer returns of up to 12-15% on investment.

Additionally, ULIPs offer tax benefits on premiums up to Rs 2.5 lakh annually. If anything unfortunate happens to the policyholder, their policy will pay the total life cover or the fund value, whichever is higher, to the nominee. Also this amount will be tax free.

5. Guaranteed Return Plan – If you are a mother with a zero-risk appetite, then investing in guaranteed return plans is an ideal option. These schemes offer guaranteed returns of up to 7.5%, absolutely tax-free.

In addition, these plans offer life insurance coverage to protect your dependents in the event of an accidental death of the insured. You can lock in the interest rate for approximately 45 years. These plans also offer tax benefits of up to Rs 5 lakh in the annual premium.

Each stage of a child’s life will require a different level of financial support. Thus, planning your finances properly can actually reduce the workload of your parents.

-The author is Co-Founder and Chief Business Officer, General Insurance, PolicyBazaar.com. The views expressed are personal.

Disclaimer:The views expressed in this article are the author’s own and do not represent the stand of this publication.