Many studies indicate that despite the heightened awareness among women, including mothers, for being financially prudent, many of them are either underinsured or do not have life insurance protection at all.
With multiple other things, mothers have also taken the lead in terms of shouldering financial responsibilities in the family. Right from managing the day-to-day finances to keeping the family’s future financially secure- moms manage it all!
However, many studies indicate that despite the heightened awareness among women, including mothers, for being financially prudent, many of them are either underinsured or do not have life insurance protection at all.
Given the current market dynamics, Nitin Mehta, Chief Customer Officer, Bharti AXA Life Insurance says, “life insurance is a must-have for mothers to safeguard their loved ones and provide stability for their families. It also eases a lot of the financial pressure on the family and children if something unforeseen befalls.”
He further adds, “it is therefore important to draw attention to why mothers should opt for life insurance and highlight why this is an absolute must-have in the financial portfolio of working mothers.”
Who should opt for it?
Though every mother requires life insurance, experts point out single mothers should consider securing themselves with adequate coverage as a life insurance policy is the one safety net which will ensure protection against life’s eventualities. “It enables one to leave a legacy for their children and provide them with financial security required to move forward,” points out Mehta.
Need for Critical illness
Further, considering that contemporary medical costs are expensive, a critical illness can quickly deplete individuals of their hard-earned savings. Mehta explains “Many women today suffer from critical illnesses and opting for term plans that come with critical illness cover can help receive a lump-sum payout in case diagnosed with such an illness. This amount can help manage expenses while they receive treatment.”
In addition to financial security, Mehta points out “selecting the right life insurance policy that falls under the exempt EEE status can help one maximize savings and meet financial goals, making it an extremely efficient investing option.”
EEE stands for triple tax exemptions, which means that the initial investment, accrued or paid-out interest and maturity value are all tax-free.
The key to optimizing the protection of a life insurance plan is to ensure that one opts for the right coverage for one’s family. Assessing the policy requirements and considering factors such as income sources, dependent members, debt, and liabilities is important as it helps in opting for adequate coverage for your family.
Mehta concludes, “One can choose from a range of life insurance policies and align the right plan with the right stage of their life. This Mother’s Day, make smarter and prudent financial choices for yourself and your loved ones.”