Along with multiple other things, mothers have also taken the lead in terms of taking on the financial responsibilities of the family. From day-to-day financial management to future family financial security, moms handle it all!
However, numerous studies indicate that despite the increased awareness of women, including mothers, about financial prudence, many of them are either underinsured or have no life insurance protection.
Given the current market dynamics, Nitin Mehta, Chief Customer Officer, Bharti AXA Life Insurance said, “Life insurance is essential for mothers to protect their loved ones and provide stability for their families. It also takes a lot of the financial pressure off the family and the kids if something unexpected happens.
He further adds, “It is therefore important to draw attention to why mothers should choose life insurance and to underline why it is an absolute must-have in the financial portfolio of mothers who working”.
Who should choose it?
Although every mother needs life insurance, experts point out that single mothers should consider protecting themselves with adequate coverage, as a life insurance policy is the only safety net that will provide protection against contingencies of life. “It allows you to leave a legacy for your children and give them the financial security they need to move forward,” says Mehta.
Need serious illness
Additionally, since contemporary medical expenses are expensive, a serious 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 to receive a lump sum payment if diagnosed with such an illness. This amount can help manage expenses while they receive treatment.
In addition to financial security, Mehta points out that “selecting the right life insurance policy that falls under exempt EEE status can help maximize savings and meet financial goals, making it a viable option for you.” ‘extremely effective investment’.
EEE stands for Triple Tax Exemption, which means that the initial investment, interest accrued or paid and the value at maturity are all exempt from tax.
The key to maximizing the protection of a life insurance plan is to ensure that you choose the right coverage for your family. Assessing policy requirements and considering factors such as sources of income, dependent members, debts and liabilities is important as it helps in choosing the right 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 one’s life. This Mother’s Day, make smarter and more prudent financial choices for yourself and your loved ones.