Insurance for Women

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INTRODUCTION

Insurance is a mechanism that helps to reduce the effects of adverse situations in the
economical way. It promises to pay to the owner or beneficiary of the asset, a certain sum if
the loss occurs.

What Is Insurance?

The business of insurance is related to the protection of the economic values of assets.
The asset would have been created through the efforts of the owner. The asset is valuable to
the owner, because he expects to get some benefits from it because it meets some of his
needs. This benefit may be an income or in some other form.
In the case of a factory or a cow, the product generated by it is sold and income is
generated. In the case of a motor car, it provides comfort and convenience in transportation,
there is no direct income. Both are assets and provide benefits.
Every asset is expected to last for a certain period of time during which it will provide
the benefits, after that, the benefit may not be available. There is a life-time for a machine in a
factory or a cow or a motor car. None of them will last forever. The owner is aware of this
and he can so manage his affairs that by the end of that period or life-time, a substitute is
made available. Thus, he makes sure that the benefit is not lost. However, the asset may get
lost earlier. An accident or some other unfortunate event may destroy it or make it incapable
of giving the benefits. An epidemic may kill the cow suddenly. In that case, the owner and
those enjoying the benefits there from would be deprived of the benefits. The planned
substitute would not have been ready. There is an adverse or unpleasant situation. Here,
insurance helps to reduce the effects of such adverse situations.

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PURPOSE & NEED OF INSURANCE

The risk only means that there is a possibility of loss or damage. The damage may or
may not happen. Insurance is done against the possibility that the damage may happen. There
has to be an uncertainty about the risk. The earthquake may occur, but the building may not
have been affected at all. The word 'possibility' implies uncertainty. Insurance is relevant only
if there are uncertainties.
In case of a human being, death is certain, but it's time is uncertain. The person is insured,
because of the uncertainty about the time of his death. In the case of a person who is ill,the
time of death is not uncertain, though not exactly known. It would be 'soon'. He can't be
insured.

HOW INSURANCE WORKS

The mechanism of insurance is very simple. People who are exposed to the same risks come
together and agree that, if any one of them suffers a loss, the others will share the loss and
make good to the person who lost. The manner in which the loss is to be shared can be
determined beforehand. It can be equal among all. It can also be proportional to the risk that
each person is exposed to.

Insurance is a form of risk management in which the insured transfers the cost of potential
loss to another entity in exchange for monetary compensation known as the premium. (For
background reading, see The History of Insurance in America.)

Insurance allows individuals, businesses and other entities to protect themselves against
significant potential losses and financial hardship at a reasonably affordable rate. We say
"significant" because if the potential loss is small, then it doesn't make sense to pay a
premium to protect against the loss. After all, you would not pay a monthly premium to
protect against a $50 loss because this would not be considered a financial hardship for most.

Insurance is appropriate when you want to protect against a significant monetary loss. Take
life insurance as an example. If you are the primary breadwinner in your home, the loss of
income that your family would experience as a result of our premature death is considered a
significant loss and hardship that you should protect them against. It would be very difficult
for your family to replace your income, so the monthly premiums ensure that if you die, your
income will be replaced by the insured amount. The same principle applies to many other
forms of insurance. If the potential loss will have a detrimental effect on the person or entity,
insurance makes sense.

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Everyone that wants to protect themselves or someone else against financial hardship
should consider insurance. This may include:

 Protecting family after one's death from loss of income

 Ensuring debt repayment after death
 Covering contingent liabilities
 Protecting against the death of a key employee or person in your business
 Buying out a partner or co-shareholder after his or her death
 Protecting your business from business interruption and loss of income
 Protecting yourself against unforeseeable health expenses
 Protecting your home against theft, fire, flood and other hazards
 Protecting yourself against lawsuits
 Protecting yourself in the event of disability
 Protecting your car against theft or losses incurred because of accidents
 And many more

How does insurance work?

Insurance works by pooling risk. What does this mean? It simply means that a large group of
people who want to insure against a particular loss pay their premiums into what we will call
the insurance bucket, or pool. Because the number of insured individuals is so large,
insurance companies can use statistical analysis to project what their actual losses will be
within the given class. They know that not all insured individuals will suffer losses at the
same time or at all. This allows the insurance companies to operate profitably and at the same
time pay for claims that may arise. For instance, most people have auto insurance but only a
few actually get into an accident. You pay for the probability of the loss and for the protection
that you will be paid for losses in the event they occur.

Risks

Life is full of risks - some are preventable or can at least be minimized, some are avoidable
and some are completely unforeseeable. What's important to know about risk when thinking
about insurance is the type of risk, the effect of that risk, the cost of the risk and what you can
do to mitigate the risk. Let's take the example of driving a car. (For more insight on the
concept of risk, see Determining Risk And The Risk Pyramid.)

Type of risk: Bodily injury, total loss of vehicle, having to fix your car
The effect: Spending time in the hospital, having to rent a car and having to make car
payments for a car that no longer exists The costs: Can range from small to very large

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Mitigating risk
Not driving at all (risk avoidance), becoming a safe driver (you still have to contend with
other drivers), or transferring the risk to someone else (insurance)
Let's explore this concept of risk management (or mitigation) principles a little deeper and
look at how you may apply them. The basic risk management tools indicate that risks that
could bring financial losses and whose severity cannot be reduced should be transferred. You
should also consider the relationship between the cost of risk transfer and the value of
transferring that risk.

Risk Control
There are two ways that risks can be controlled. You can avoid the risk altogether, or you can
choose to reduce your risk.

Risk Financing
If you decide to retain your risk exposures, then you can either transfer that risk (ie. to an
insurance company), or you retain that risk either voluntarily (ie. you identify and accept the
risk) or involuntarily (you identify the risk, but no insurance is available).

Risk Sharing
Finally, you may also decide to share risk. For example, a business owner may decide that
while he is willing to assume the risk of a new venture, he may want to share the risk with
other owners by incorporating his business.

For example. If you could get rid of the risk altogether, there would be no need for insurance.
The only way this might happen in this case would be to avoid driving altogether. Also, if the
cost of the loss or the effect of the loss is reasonable to you, then you may not need insurance.

For risks that involve a high severity of loss and a low frequency of loss, then risk
transference (ie. insurance) is probably the most appropriate protection technique. Insurance
is appropriate if the loss will cause you or your loved ones a significant financial loss or
inconvenience. Do keep in mind that in some instances, you are required to purchase
insurance (i.e. if operating a motor vehicle). For risks that are of low loss severity but high
loss frequency, the most suitable method is either retention or reduction because the cost to
transfer (or insure) the risk might be costly. In other words, some damages are so inexpensive
that it's worth taking the risk of having to pay for them yourself, rather than forking extra
money over to the insurance company each month.

The Risk Management Process

After you have determined that you would like to insure against a loss, the next step is to seek
out insurance coverage. Here you have many options available to you but it's always best to
shop around. You can go directly to the insurer through an agent, who can bind the policy.
The process of binding a policy is simply a written acknowledgement identifying the main
components of your insurance contract. It is intended to provide temporary insurance
protection to the consumer pending a formal policy being issued by the insurance company. It
should be noted that agents work exclusively for the insurance company. There are two types
of agents:

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1. Captive Agents: Captive agents represent a single insurance company and are required
to only do business with that one company.
2. Independent Agent: Independent agents represent multiple companies and work on
behalf of the client (not the insurance company) to find the most appropriate policy.

Underwriting
Underwriting is the process of evaluating the risk to be insured. This is done by the insurer
when determining how likely it is that the loss will occur, how much the loss could be and
then using this information to determine how much you should pay to insure against the risk.
The underwriting process will enable the insurer to determine what applicants meet their
approval standards. For example, an insurance company might only accept applicants that
they estimate will have actual loss experiences that are comparable to the expected loss
experience factored into the company's premium fees. Depending on the type of insurance
product you are buying, the underwriting process may examine your health records, driving
history, insurable interest etc.
The concept of "insurable interest" stems from the idea that insurance is meant to protect and
compensate for losses for an individual or individuals who may be adversely affected by a
specific loss. Insurance is not meant to be a profit center for the policy's beneficiary. People
are considered to have an insurable interest on their lives, the life of their spouses (possibly
domestic partners) and dependents. Business partners may also have an insurable interest on
each other and businesses can have an insurable interest in the lives of their employees,
especially any key employees.

Insurance Contract
The insurance contract is a legal document that spells out the coverage, features, conditions
and limitations of an insurance policy. It is critical that you read the contract and ask
questions if you don't understand the coverage. You don't want to pay for the insurance and
then find out that what you thought was covered isn't included. (For more insight, read
Understand Your Insurance Contract.)

Insurance terminology you should know:

Bound: Once the insurance has been accepted and is in place, it is called "bound". The
process of being bound is called the binding process.

Insurer: A person or company that accepts the risk of loss and compensates the insured in the
event of loss in exchange for a premium or payment. This is usually an insurance company.

Insured: The person or company transferring the risk of loss to a third party through a
contractual agreement (insurance policy). This is the person or entity that will be
compensated for loss by an insurer under the terms of the insurance contract.

Insurance Rider/Endorsement: An attachment to an insurance policy that alters the policy's

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coverage or terms. (To learn more, read Let Life Insurance Riders Drive Your Coverage.)

Insurance Umbrella Policy: When insurance coverage is insufficient, an umbrella policy

may be purchased to cover losses above the limit of an underlying policy or policies, such as
homeowners and auto insurance. While it applies to losses over the dollar amount in the
underlying policies, terms of coverage are sometimes broader than those of underlying
policies.

Insurable Interest: In order to insure something or someone, the insured must provide proof
that the loss will have a genuine economic impact in the event the loss occurs. Without an
insurable interest, insurers will not cover the loss. It is worth noting that for property
insurance policies, an insurable interest must exist during the underwriting process and at the
time of loss. However, unlike with property insurance, with life insurance, an insurable
interest must exist at the time of purchase only.

Insurance is an integral part of any personal financial plan. The type of insurance and the
amount of coverage you obtain all depends on your unique financial and family
circumstances, and must be evaluated carefully. When considering purchasing coverage, you
should review all the potential risks and the financial impact of these risks on your financial
health. This will help you determine what options to look for and what questions to ask. What
you need to keep in mind is that you do not want to be underinsured or overinsured, which
means you have to do your homework before you buy. And as with any type of financial
product, you must read the fine print and consult with a competent advisor.

Let's review what we've learned:

 Insurance is a form is risk management in which the insured transfers the cost of
potential loss to another entity in exchange for monetary compensation known as the
premium.
 Insurance works by pooling risks. Because the number of insured individuals is so
large, insurance companies can use statistical analysis to project what their actual
losses will be within the given class. This allows the insurance companies to operate
profitably and at the same time pay for claims that may arise.
 Underwriting is the process of evaluating the risk to be insured. This is done by the
insurer when determining how likely it is that the loss will occur, how much the loss
could be and then using this information to determine how much you should pay to
insure against the risk.
 The insurance contract is a legal document that spells out the coverage, features,
conditions and limitations of an insurance policy.
 Property and casualty insurance is insurance that protects against property losses to
your business, home, or car and/or against legal liability that may result from injury or
damage to the property of others. This type of insurance can protect a person or a
business with an interest in the insured physical property against losses.

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 An auto insurance policy typically covers you and your spouse, relatives who live in
your home and other licensed drivers to whom you give permission to drive your car.
 Homeowners insurance typically covers the dwelling (the structure), personal
property and contents, and some forms of personal liability. The policy may cover
direct and consequential loss resulting from damage to the property itself, loss or
damage to personal property, and liability for unintentional acts arising out of the non-
business, non-automobile activities of the insured and members of that insured's
household.
 Umbrella insurance helps you protect your assets if you are sued. If you are worried
that the liability insurance coverage you have through your auto or property policies is
still not enough, you can consider adding an umbrella policy.
 Health insurance is a type of insurance that pays for medical expenses in exchange for
premiums. The way it works is that you pay your monthly or annual premium and the
insurance policy contracts healthcare providers and hospitals to provide benefits to its
members at a discounted rate.
 An indemnity plan, sometimes called a fee-for-service plan, is a type of insurance that
reimburses you according to a schedule for medical expenses, regardless of who
provides the service.
 The HMO is the most common type of insurance policy people own and the one most
frequently provided by employers. HMOs provide a wide range of comprehensive
healthcare services to a group of subscribers in return for a fixed periodic payment.
 PPOs are a group of healthcare providers that contract with an insurance company,
third-party administrators, or others (like employers) to provide medical care services
at a reduced fee.
 A point of service plan is a hybrid plan that combines aspects of an HMO, PPO and
indemnity plan. This type of plan is more flexible in that it allows you to decide at the
time you need services to elect to use the POS plan's physician to arrange in-network
care (HMO feature), or to go outside the network or hospital and pay a higher portion
of the cost.
 Disability insurance can replace a portion of the salary you were making before you
became disabled and unable to work after a serious injury or illness.
 Disability insurance providers rate their premiums based on your job and the level of
risk involved in doing that job.
 Life insurance provides you with the opportunity to protect yourself and your family
from personal risk exposures like repayment of debts after death, providing for a
surviving spouse and children, fulfilling other economic goals (such as putting your
kids through college), leaving a charitable legacy, paying for funeral expenses, etc.
 Whole life insurance provides guaranteed insurance protection for the entire life of the
insured, otherwise known as permanent coverage. These policies carry a "cash value"
component that grows tax deferred at a contractually guaranteed amount (usually a
low interest rate) until the contract is surrendered.

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 Universal life insurance, also known as flexible premium or adjustable life, is a

variation of whole life insurance. Like whole life, it is also a permanent policy
providing cash value benefits based on current interest rates.
 Variable life insurance is designed to combine the traditional protection and savings
features of whole life insurance with the growth potential of investment funds. This
type of policy is comprised of two distinct components: the general account and the
separate account. The general account is the reserve or liability account of the
insurance provider, and is not allocated to the individual policy. The separate account
is comprised of various investment funds within the insurance company's portfolio,
such as an equity fund, a money market fund, a bond fund, or some combination of
these.

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Insurance Classification

Insurance provides compensation to a person for an anticipated loss to his life, business or an
asset. Insurance is broadly classified into two parts covering different types of risks:

1. Long-term (Life Insurance)

2. General Insurance (Non-life Insurance)

Long-term Insurance
Long term insurance is so called because it is meant for a long-term period which may stretch
to several years or whole life-time of the insured. Long-term insurance covers all life
insurance policies. Insurance against risk to one's life is covered under ordinary life
assurance. Ordinary life assurance can be further classified into following types:
Types of Ordinary Meaning
Life Assurance
1. Whole Life In whole life assurance, insurance company collects premium from the
Assurance insured for whole life or till the time of his retirement and pays claim to
the family of the insured only after his death.
2. Endowment In case of endowment assurance, the term of policy is defined for a
Assurance specified period say 15, 20, 25 or 30 years. The insurance company pays
the claim to the family of assured in an event of his death within the
policy's term or in an event of the assured surviving the policy's term.
3. Assurances for i).Child's Deferred Assurance: Under this policy, claim by insurance
Children company is paid on the option date which is calculated to coincide with
the child's eighteenth or twenty first birthdays. In case the parent
survives till option date, policy may either be continued or payment may
be claimed on the same date. However, if the parent dies before the
option date, the policy remains continued until the option date without
any need for payment of premiums. If the child dies before the option

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date, the parent receives back all premiums paid to the insurance
company.
ii). School fee policy: School fee policy can be availed by effecting an
endowment policy, on the life of the parent with the sum assured,
payable in installments over the schooling period.
4. Term Assurance The basic feature of term assurance plans is that they provide death risk-
cover. Term assurance policies are only for a limited time, claim for
which is paid to the family of the assured only when he dies. In case the
assured survives the term of policy, no claim is paid to the assured.
5. Annuities Annuities are just opposite to life insurance. A person entering into an
annuity contract agrees to pay a specified sum of capital (lump sum or
by installments) to the insurer. The insurer in return promises to pay the
insured a series of payments until insured's death. Generally, life annuity
is opted by a person having surplus wealth and wants to use this money
after his retirement.

There are two types of annuities, namely:

Immediate Annuity: In an immediate annuity, the insured pays a lump
sum amount (known as purchase price) and in return the insurer
promises to pay him in installments a specified sum on a
monthly/quarterly/half-yearly/yearly basis. Deferred Annuity: A
deferred annuity can be purchased by paying a single premium or by
way of installments. The insured starts receiving annuity payment after a
lapse of a selected period (also known as Deferment period).
6. Money Back Money back policy is a policy opted by people who want periodical
Policy payments. A money back policy is generally issued for a particular
period, and the sum assured is paid through periodical payments to the
insured, spread over this time period. In case of death of the insured
within the term of the policy, full sum assured along with bonus
accruing on it is payable by hte insurance company to the nominee of
the deceased.

General Insurance
Also known as non-life insurance, general insurance is normally meant for a short-term
period of twelve months or less. Recently, longer-term insurance agreements have made an
entry into the business of general insurance but their term does not exceed five years. General
insurance can be classified as follows:
Fire Insurance Fire insurance provides protection against damage to property caused by
accidents due to fire, lightening or explosion, whereby the explosion is caused
by boilers not being used for industrial purposes. Fire insurance also includes

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damage caused due to other perils like strom tempest or flood; burst pipes;
earthquake; aircraft; riot, civil commotion; malicious damage; explosion;
impact.
Marine Marine insurance basically covers three risk areas, namely, hull, cargo and
Insurance freight. The risks which these areas are exposed to are collectively known as
"Perils of the Sea". These perils include theft, fire, collision etc.
Marine Cargo: Marine cargo policy provides protection to the goods loaded on
a ship against all perils between the departure and arrival warehouse.
Therefore, marine cargo covers carriage of goods by sea as well as
transportation of goods by land.
Marine Hull: Marine hull policy provides protection against damage to ship
caused due to the perils of the sea. Marine hull policy covers three-fourth of
the liability of the hull owner (ship owner) against loss due to collisions at sea.
The remaining 1/4th of the liability is looked after by associations formed by
ship owners for the purpose (P and I clubs).
Miscellaneous As per the Insurance Act, all types of general insurance other than fire and
marine insurance are covered under miscellaneous insurance. Some of the
examples of general insurance are motor insurance, theft insurance, health
insurance, personal accident insurance, money insurance, engineering
insurance etc.

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Women’s Role in the Economy

In a new, globalised economy, the need to be concerned about the impact of

globalization on women is increasingly significant. These are a need that is felt across the
board – rural-urban, agriculture-industry-services, educated -skilled-unskilled and so on. A
number of questions have arisen in recent times.
How have self help groups (SHGs) empowered Indian women? How has been
development-induced displacement influenced the lives of women and children ‘who have
been thus displaced? What does the Global Gender-Cap Report 2006 say about Indian
women? Is the bifurcation of women’s lives into realms of the social and the economic a
forced one? Has this been determined not by the women themselves, but by those who
simplify the problem and deal with its parts rather than understand the whole and its
interlinking complexities?
To address these questions and many more, and to explore the possibilities of
alternative solutions, Christ College and Centre for Social Action, Bangalore and Drik India,
a photographic initiative in Kolkata, jointly hosted an international conference on 26 and 27
November, 2007. The conference, titled ‘Women in Emerging Indian Economy – Silence to
Voice” ” ‘Problems and Possibilities’, was supported by Fredskorpset (FK),-a government
body under the Norwegian Ministry of Foreign Affairs (MFA). Case studies, empirical
research and successful initiatives from the .state, market and civil society were the key tools
in the conference deliberations. Researchers, academicians, policy makers, gender experts,
NGOs, voluntary organizations, media organizations were invited from across the country to
participate and share their experiences in different fields.
There were also inputs from international areas too, such as Sri Lanka, Tanzania and
The Philippines. In her keynote address, activist and journalist Padmashree Patricia Mary
Mukhim of Meghalaya presented a paper on the Global Gender Gap Report 2006, which

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surveyed 115 world economies. She pointed out that while the World Economic Forum
placed India way ahead of some advanced nations like USA, France and Japan SO far as
political empowerment is concerned, the participation of women in the economy, their
educational attainments and access to health is way below these advanced countries.
India ranks 20th in political empowerment and 110th in economic empowerment. Indian
women constitute a meager eight per cent in the Lok Sabha and three per cent hold
ministerial posts. In India, work-force participation of women is 34 per cent in the labor force
and 21 per cent in technical and professional workforce. Comparative figures of women-
participation in the work force in the US show a percentage of 60 and 55 respectively. The
Global Gender Gap Index measures the difference between the sexes in matters of economic
participation and opportunity, educational attainment, health, survival and political
empowerment.
Interestingly, the Gender Gap Report throws light on the lesser-known facts about
women’s economic empowerment such as the duration of paid maternity leave, maternal
mortality rates, and access to skilled ‘health staff for childbirth. Rangan Chakravarty, media
producer and editorial consultant of Ananda Bazar Patrika, Kolkata, made his presentation on
‘Women and the Media through Television’. He pointed out that violence is very much a part
of the entire process of communication in television. The systemic violence by television is
characterized by the marginalization of the majority.
By banishing the poor from the realm of images the media renders them invisible
because the have-nets, which include a large percentage of women, are considered a
nuisance, a burden that disrupts the smooth passage to a global, consumerist world.
Invisibility, he underscored, is a major and strong weapon – ‘out of sight, out of mind’.

Chakravarty insisted on television’s need to:

(i) Raise a voice against the woman’s body being made a site for the nation’s morality;
(ii) Question and debate on how and why women are increasingly made targets of political
violence and
(iii) Recognize that women are the worst sufferers of economic violence.
Representation, according to him, need not necessarily mean empowerment because
representation also depends on which women get represented in the media, how and in what
context. Dr Walter Fernandez, Director, North Eastern Social Research Centre, Guwahati,
pointed out how globalization will add to the woes of women who have already been
displaced in the past due to political reasons and ethnic conflict because globalization has led
to large-scale acquisition Of land by the corporate sector in general and the private sector in
particular. He added that large-scale land acquisition for profit-oriented industrialization also
led to large-scale mechanization raising unemployment levels persistently.
Forced displacement makes women intimacies the dominant ideology as a coping
mechanism. For example, when outsiders enter a township, they bring along with them the
ideology of consumerism and material affluence. This influences the male residents of the
township who begin to spend a large part of their income on clothes and entertainment,
leaving women with little share to run the family even when the men’s incomes rise. Forced

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to seek economic alternatives to feed the family, many women often get into prostitution. In
most mining towns in Jharkhand for instance, a specific
area called Azad Basti has evolved over time where men
who leave their families behind to work in the mines, visit
this place to buy sex.
Development-induced displacement triggered by
globalization, would deprive women of whatever little
autonomy they had. Gloria Romaine de Silva of the Center
for Family Services (CFS) Sri Lanka, ‘in her presentation
on ‘The Changing Agricultural Sector – A Gendered
Approach’, explained that the participation of women in the agricultural sector in Sri Lanka
has diminished over the past two decades. She added that in spite of upward social mobility
brought about by tree education and health care, the overall status of Sri Lankan women has
come down. Gendered social norms, armed conflict, slow economic growth, accelerated
development programmes, combined with the chronic apathy and lack of political will among
legislators have resulted in blocking the attainment of gender equality and equity in keeping
with international norms.

Ichikaeli Maro, Chairperson, Tanzania Media Women’s Association (TAMWA) in her paper
on ‘Women in the Emerging Economic Sector’ underscored that proponents of gender
equality picked four priority areas to better the condition of women. These are
(a) Education,
(b) Legal literacy,
(c) Economic empowerment and
(d) Political participation, which were adopted immediately after the Beijing Conference in
1995.
The conference explored and assessed the role of women in the changing economy and the
role of the state, market and civil society initiatives under the present globalised economic
environment. It identified some of these challenges in terms of possible creation of pockets of
resistance, un- equal growth, polarization, coping with new reforms in the constitution and
last but not the least, a critical understanding of who would be the ultimate beneficiaries of
these changes. It went on to study how alternative institutional mechanisms and innovative
practices could strengthen gender relations in developing nations. The Indian woman keeps
fighting many wars on different fronts.
The battle is the battle of life where she also must encounter her share of oppression and
humiliation. While new schemes are devised and new methods are invented to make life
easier for less privileged women, their degree of empowerment remains a matter of grave
concern.

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ROLE OF WOMEN

It is true that the worth of a civilization can be measured by the place that it gives to
women in the society. It is also true that where women are honored, there gods live. Indian
Women in the past enjoyed an exalted position in the society. They excelled in various
spheres of life and enjoyed every kind of liberty to develop themselves, socially, morally and
intellectually. However, the position did not remain the same for long. During Muslim and
British rule, her position was eclipsed. She was deprived of a wide measure of liberty and
was confined within the four walls of the house. She was thought more as a possession than a
human being. She was reduced to be a play thing of man and an object to gratify his lust,
whims and fancies.

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Need for Women to Insure Themselves

Women in India have an advantage when it comes to insurance: they still pay lower
premiums than their male counterparts do. Preferential rates for women were prevalent
around the world until recently. Since 21 December 2012, the European Union ended this
gender discrimination in the insurance sector. Everywhere else though, women continue to
pay lower rates.

Why Do Women Pay Less?

Women tend to have a longer life span than men do. Statistics suggest that a woman's life
expectancy is five years longer than that of a man, although the figures vary across
demographics. Since women outlive men on the average, they are likely to pay premiums for
a longer period. This reduces the insurer's risk of guaranteeing the death benefits if the
policyholder were to die within the policy term.
Women also tend to leave healthier lifestyles, and are less likely than men to take up
smoking, excessive drinking, have unhealthy diets and so on. Men are also more likely to
drive rash, which pushes up their auto insurance rates as well.

Insurance for the Ladies

1. Working Women – Given the competitive rates, you would think that at least
working women would have sufficient life insurance. But that is not the case. The
tribe of working women may well be increasing, but men continue to be the principal
breadwinners of most families. Hence, men seek larger life insurance coverage while
their spouses go in for smaller policies. This should ideally change in the coming
years. Working women make a substantial financial contribution to their households,
and their loss would hit their families hard. A good insurance policy could bolster the
family against that financial loss. Whole life policies are the best choice because they
guarantee a death payout for your beneficiaries.
2. Stay-at-Home Moms – Housewives and stay-at-home moms rarely have insurance
policies in their name. The argument is that since they do not contribute to the
household income, their families will not be financially affected by their death.
However, a stay-at-home mom performs a number of services (cooking, cleaning,
tutoring the kids, etc.) that, in her absence, would have to be performed by either
another family member or a professional. The loss of a stay-at-home mom can hike
household expenses, and may even require the father to spend more time at home,
thereby resulting in a drop in income. A modest insurance policy could bolster the
family in the event of her passing. Consider buying a term policy that matures once
your kids grow up or finish college.
3. Pregnant Women – While insurers may not grant you maternity insurance when you
are pregnant, getting life insurance is easy enough. You will be asked all the same

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questions about height, weight, general health, and whether you smoke or drink
among other things. The only difference is that some questions (weight, smoking and
drinking habits, etc.) will have to be answered as per your pre-pregnancy days. One
negative is that conditions like high blood pressure and diabetes that result from
pregnancy will also be taken into account, resulting in higher premiums. As a general
rule, it makes more sense to shop for insurance before getting pregnant. But if you are
already with child, make sure to compare a wide range of policies and read the fine
print.

Insurance is necessary regardless of gender. If you have a family, make sure to shop around
for a policy that fits your needs.
Increasingly, more and more women are becoming independent. Some are leading the best
companies in India. The number of women drivers and vehicle owners are on a rise.

They are taking up financial responsibility of the house; contributing equally to the expenses
as the men. The transformation of the role means that dependability on the women is the
same as on men. And they too, need adequate insurance to cut the risks.

Be it life insurance, health insurance, or accident insurance, women also need to be

appropriately covered to safeguard against the unknown risks.

Insurance companies have realized this and offer policies that suits the need of women. Here
are some of them.

Life insurance
The percentage of women owing a life insurance is miniscule compared to men. To bridge
this gap, insurance companies have launched policies targeted towards the gender.

Some of them include Max New York Life Platinum Protect Plan, SBI [Get Quote] Life Saral
Shield, Aviva [Get Quote] Life Shield Plus, Met Protect Plan and Kotak Term Plan.

These are term plans - there are no returns in these policies. Compared to policies for men,
the premium is lower. This is because; women have lower mortality (death) rate as compared
to men.

If you want investment-linked life insurance policy, LIC [Get Quote ] has added one to its
portfolio that suits the need of women. The policy, LIC Jeevan Bharti, is eligible for bonus
and provides add-on covers for accident benefit, critical illness benefit and congenital
disability benefit.

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Health insurance

A comprehensive health insurance is as

important as a life cover. Many ailments such as
arthritis, spondylitis and deficiency of
hemoglobin affect women at an early age. A
good medical cover can help them take care of
the treatment costs.

Moreover, a good health insurance cover comes

very handy at the time of maternity and
childbirth as they offer 'maternity benefits',
'childbirth benefits' and 'pre and post natal care'.

Some of such policies include Apollo Munich's Easy Health, Max Bupa's Heartbeat and Star
Health's Wedding Gift.

Car insurance
Even though women drive less than men do, they are more prone to accidents, according to
researches. Irrespective of this, car insurance is necessary if you are taking the wheel.

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Insurance for Women

Society is finally realizing the importance of women. Women have finally managed to
break the shackles of the four walls and stepped out to keep pace with their male
counterparts. The last few decades has witnessed a sea change in the outlook of society
towards women. The image of the traditional Indian housewife has undergone a drastic
metamorphosis over the last few decades. Women in India today are walking shoulder to
shoulder with their male counter parts. Today women are occupying important positions in
top notch corporate houses along with being an excellent home maker.

Since women are on the run continuously sometimes for their homes and sometimes
for their outdoor work it is very essential that the health of a woman remains in good shape.
Taking this into consideration most of the popular insurance companies in India today are
coming with insurance policies tailored specially for women. Most of the insurance
companies in India today have both life and health insurance policies for women.

Parents and grandparents looking to save for their children/grandchildren's future

have been the biggest targets for life insurance companies. The next in line are those 10-15
years away from retirement. In the recent past, life insurers have started focusing on women
and have come up with products catering to women-specific needs, specially health-related.
Yateesh Shrivastava, CMO at Aegon Religare Life Insurance, says, there is a lot of demand
for women-specific plans. The need for these plan arises because women often don’t
revaluate their needs over time and fail to upgrade their insurance plans at different stages.
Life Insurance Corporation (LIC) has had Jeevan Bharti, a traditional investment-cum-
insurance plan for a long time. Among the women-specific products that were launched in the
past year are Bajaj Allianz General Insurance launched Women Critical Illness Plan, Aegon
Religare's Women Critical Illness rider and HDFC Life's Smart Woman Plan. This apart,
Bajaj Allianz Life Insurance also has a product called Mahila Gain.

If you glance through these products, you will see all the plans cover maternity-
related complications, women-specific critical illnesses and congenital disabilities.
Congenital disabilities mean conditions infants may be born with. These covers pay for
expenses incurred by the woman towards her child’s treatment.

Usually, health insurance doesn't cover breast/ ovaries/uterus cancer and child-birth-
related problems. Hence, while buying women-centric insurance plans it’s important for you
to see if your plan covers these risks in order to make your plan more comprehensive in
nature.

However, experts say these plans are not sufficient from the perspective of an
individual's health insurance needs. “I would suggest women subscribe to plans offering

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investment facility also. But, from the health insurance perspective, there are many diseases
which are not covered in women-centric policies,” says a senior HDFC Life executive. This
means you will need to buy a comprehensive health insurance and top up the base term or
health plan with any critical illness rider, if you specifically want it.

Importantly, if you have a family history of the diseases covered by women-centric

plans, be ready to pay a higher premium (up to 25 per cent) and/or higher waiting period
before the disease is covered, say experts. Interestingly, if you ask for a very high cover, then
too, your premium could be hiked.

A comprehensive health cover is much cheaper as opposed to modified products like

women’s plans. A Rs 10-lakh cover would cost anywhere between Rs 3,000-4,500 a year.

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Companies providing Women Insurance

Top women health insurance policies

Life Insurance Corporation: The Jeevan Bharati-I plan of LIC is meant especially for women.
It comes with a Critical Illness (CI) Rider whereby the policyholder will be provided a
significant amount in case she is diagnosed with any of the specified critical illnesses. This
benefit can be availed till 60 years.
Holders of this policy can also be provided the Congenital Disabilities Benefit (CDB)
Rider. This benefit can be availed by women between the 18 and 35 years age group. Hereby,
50% of the CDB sum assured amount is paid if the newborn child of policyholder has certain
congenital issues that are part of the ones covered by LIC. The benefit is provided for 2
babies at the most and the benefit is not provided for childbirth after 40 years.

Bajaj Allianz: The Critical Illness for Women plan of Bajaj Allianz covers any and every
lady interested to avail one. The various ailments covered by this plan may be mentioned as
below:

 Ovarian cancer
 Breast cancer
 Vaginal cancer
 Cervical cancer
 Uterine or endometrial cancer
 Burns
 Fallopian tube cancer
 Paralysis or multitrauma

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The plan also provides congenital disability benefits whereby 50 percent of the sum assured
is provided in case the lady delivers a child with at least one of the following congenital
defects:
 Down’s syndrome
 Cleft palate with or without cleft lip
 Congenital cyanotic heart disease
 Spina bifida
 Trachea-esophageal fistula

If there is a claim as per the Section I on critical illness then the policy will provide a
Children’s Education Bonus for the education of at least 1 child. However, the amount
provided in this case will be previously fixed by the service provider.

If the insured loses her job within a 3 month period of being diagnosed with a critical illness,
as specified by the insurer, she will receive INR 25 thousand to cover the job loss. However,
the claim should be made as per Section I.

HDFC Life Insurance: The HDFC Life Smart Woman Plan provides coverage against
congenital problems and pregnancy issues in addition to malignant cancers that affect women
specifically. The policy provides coverage for premium expenses at this time so that
treatment can be done properly.

Following are some of its features:

 Choice of options in the plan
 Choice of yearly premium
 Sum assured
 Choice of term period of policy
 Age limits
 Choice of funds

The advantages of this plan may be enumerated as below:

 The insured can receive premium funding and waiver benefits for a 3 year period in
case they face pregnancy problems or give birth to children who have congenital
issues. This benefit is also provided if their spouses pass away or they are diagnosed
with malignant cancer
 Once the policy matures the fund value can be availed at current unit prices in the
form of a lump sum. Policyholders can also go for the settlement option. The maturity
benefit can be used for funding requirements such as education for children, business
or travel
 Ones availing the Elite and Premier options will be provided with extra cash payouts
at definite periods
 Partial withdrawals are allowed for meeting unplanned expenditure

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 If the policyholder passes away the nominee will be paid the complete fund value or a
majority of the sum assured

Tata AIG: The Wellsurance Woman plan of Tata AIG provides the following features:

 A benefit amount if the policyholder is diagnosed with any one of the 11 previously
specified critical illnesses. Greater benefits are provided if it is cancer
 Convalescence benefit for treatment after hospitalization
 Cashless hospitalization at more than 3000 hospitals across the country that are part of
the network
 Cosmetic reconstruction surgery benefit in case of accidental injuries
 Hospital cash benefits on a daily basis
 Income tax benefits as per Section 80D
 More hospital cash in case of admissions to ICCU or ICU

Apart from the above mentioned ones, interested people can also opt for individual health
plans being provided by the top insurers in India.

Some of the important Insurance policies for women provided by LIC are:

Easy Health Individual Plan: Easy Health Individual Plan provided by Apollo Munich is a
comprehensive health insurance plan that can be purchased by men or women. The plan if
chosen by women includes in it all the health benefits offered by other plans and also certain
maternity benefits suitable for pregnant women.

JEEVAN BHARATI-I (PLAN No. 192): Launched on July 30 2008 by LIC India this plan
is an exclusive insurance policy for women. Especially deigned for working women the
JEEVAN BHARATI-I (PLAN No. 192 is a money back policy. The benefits offered to the
ensured under this plan include optional Accident Benefit, Critical Illness Benefit and
Congenital Disability Benefit. The maximum and minimum amount that the insured will
receive would be ` 50,000 and ` 2, 50,000 respectively.

Vijaya Raji Janani Kalyan Yojana: Vijaya Raji Janani Kalyan Yojana by United India
Insurance Company is designed keeping in mind the development and welfare of women of
the state of Madhya Pradesh.

Swayam Shakti Suraksha; Swayam Shakti Suraksha is currently among the best insurance
policies for women in India. A joint venture between one of the biggest microfinance
companies in the country SKS Finance's Bajaj Allianz Swayam Shakti Suraksha supports
around 1 million women across the country. The policy supports around 3.6 million women
in rural India across 18 states. Known as one of the cheapest polices the tenure of this plan
extends to 5 years. The policy can be started with just depositing an amount of ` 500.

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LIC Policies

Jeevan Sukanya

Suitability:
 This plan is exclusively designed for female child aged 1 to 12 years. Basically, it is a
limited premium payment plan for the child providing risk cover after a deferment
period. In view of the multiple benefits the policy offers, any girl child between 1 to
12 years may opt for this policy. When the life assured gets married, a free insurance
cover extends on the life of husband also.
Salient Features:
 Girl child between ages 1 and 12 years only is eligible.
 Father, mother and if they are not alive, legal guardian can submit proposal on the life
of the child.
 Risk under the policy commences from policy anniversary falling immediately after
attainment of age 7 years of the child or 2 years from date of commencement of
policy, whichever is later.
 Policy vests on the life assured after the life assured attains majority.
 When the child gets married, a free insurance cover extends for the life of husband
also.
 The premium payments are to be made for a period equal to 20 years minus age at
entry. Policy term is fixed at 50 years minus age at entry.
 No bonuses are payable during waiting period. However, once risk commences bonus
vests for waiting period.
 Premium waiver benefit available: for this deferred period is reckoned as equal to 18
minus age at entry.

Benefits:
On Survival
 On surviving premium paying term, full sum assured is paid as survival benefit. The
policy continues with risk cover and participates in profit up to age 50 years.
 On the life assured surviving up to date of maturity only vested bonuses will be
payable, the sum assured having already been paid as survival benefit.
 If the life assured gets married, insurance cover commences for husband. If the
husband pre-deceases the life assured during the term of the policy, full sum assured

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without bonuses is payable. The contract does not come to an end and continues on
the life of the woman and participates in the profit.

On Death
 In case the life assured dies before the risk is commenced (i.e. during deferred
period), premiums paid (including pwb premiums) are refunded and the contract
comes to an end.
 In case of the death of life assured after the risk commences, but before date of
maturity, full sum assured along with vested bonuses are payable.

Risk on the life of husband

On the marriage of the life assured, a free cover extends on the life of the husband also with
no additional premium payment.

The Risk on husband's life commences from :

 Policy anniversary falling on or immediately after completion of 20 years of age by
the life assured.
 Three calendar months after date of marriage or
 One calendar month after receipt of intimation of marriage with proper evidence,
whichever is later.

Other Conditions
 Minimum sum assured: Rs.30, 000.
 Maximum sum assured: Rs.5, 00,000.
 Minimum premium must be Rs.800 per annum
 No medical exam if the age of the child is less than 10 years.
 Proposals from children who are not attending school even after 5 years of age will
not be entertained.
 A joint declaration signed by both parents declaring state of health of the child is
required to be submitted.
 The period from date of commencement of policy to the date of commencement of
risk is known as waiting period. Waiting period in no case will be less than 2 years.
 No Accident Benefits and Extended Permanent Disability Benefit (EPDB) under this
plan.
 Permanent Disability Benefit (PDB) only from date of vesting.
 Evidence of marriage :
o Marriage certificate.
o Letters from two respectable persons who attended the marriage

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LIC Policy
Jeevan Sneha

Jeevan Sneha

Eligibility
Minimum age at entry 18 years
Maximum age at entry: 50 years
Maximum age at maturity 70 years
Maximum term of the policy 20 years
Minimum sum assured Rs 50,000
Maximum sum assured Rs 5,00,000
Mode of payment Yearly

Features:
 This plan is designed exclusively for women for providing funds in time of need like
marriage, sickness, education etc. All female lives between 18 & 50 can secure the
policy. Physically handicapped women are also eligible subject to certain conditions.
 Periodic returns of sum assured with facility to encash at will. Attractive benefits if
retained with LIC.
 Unique provision for payment of guaranteed additions and loyalty addition.
 Life cover continues despite non-payment of premium.
 Also covers pregnancy and childbirth risk along with accident benefit at no extra cost.
 Flexibility in premium payment.
 Offers an option for pension (annuity) on maturity.

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Benefits:
On survival
On survival Amount of money back On a policy of Rs
up to (% of sum assured) 1,00,000
5 years 20% Rs 20,000
10 years 20% Rs 20,000
15 years 20% Rs 20,000
Date of 40% + guaranteed additions
Rs 40,000
maturity + loyalty additions

On Death
In case of death of the life assured during the policy term, the full sum assured is payable in
addition to survival benefits paid earlier. The guaranteed additions and loyalty addition are
also payable.

Guaranteed additions
The guaranteed additions @ Rs.70/- per Rs 1,000 sum assured for each year premium paid,
will be payable with maturity or death claim.

Loyalty addition
If the premiums are paid for at least 5 years, loyalty addition may become available along
with the claim payment.

Special benefits
Encashment of survival benefits as and when needed
The policyholder at her option may avail of the survival benefit any time on or after its due
date. If opted to avail later, increased survival benefit (increment @11% compounded yearly)
will be payable.
Free insurance cover
After two years premiums have been paid, whenever premium payment is discontinued, the
risk cover for full sum assured will continue for 3 years from the due date of first unpaid
premium.
Accident benefit
Accident benefit is available under this policy and is admissible during the period of extended
cover of 3 years also without any extra premium.
Flexibility in premium payment
The policyholder can pay next premium in advance at her convenience, for which a rebate @
10% will be available. Advance payment can also be in installments - not more than 3.
Pregnancy and childbirth risk
is also covered (with some exceptions) without extra premium if the policy is in force.
Option for annuity

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The policyholder can opt for a pension (annuity) in lieu of the maturity amounts. (The option
should be exercised 6 months before date of maturity). The annuity rates prevalent at the time
of maturity will be applicable.

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Policies for Pregnant

Ladies

Mediclaim policies in India such as maternity insurance are offered by insurance firms as a
component of group insurance policies to corporate houses. None of the general insurance
firms provide complete Insurance Policy for Pregnant Women as the coverage shields only
unanticipated risk cover and maternity is not categorized under this. Moreover, there are no
particular parameters or consistency among the various pregnant women insurance benefits,
either in its inclusions or in its omissions. However, there are few firms offering maternity
insurance policies but they rarely cover maternity expenses that take place within the nine
months of buying the scheme.

Companies offering Insurance Policies for Pregnant Women:

It is vital for maternity insurance to incorporate all expenditures incurred during
pregnancy, right from the delivery to post-natal care in Indian hospitals. The companies
which offer Insurance Policy for Pregnant Women are: Apollo DKV, ICICI Lombard, United
India Insurance, Cholamandalam General Insurance and Star Health. Some of them are
described briefly as under:
 ICICI Lombard's Health Advantage Plus provides health insurance along with OPD
(outpatient department) cover that incorporates pre-natal examinations and medical
costs.
 United India Insurance offers maternity insurance under its group policy. It offers
coverage for maternity expenditures on imbursement of an additional premium and
also covers expenditures incurred during hospitalization. The patients admitted in
nursing homes are also entitled to an amount of ` 50,000 or the sum assured,
whichever is less.
 Apollo DKV provides maternity benefits such as day care coverage, expenses met
before and after hospitalization, etc. Apollo DKV's Easy Health provides portability
of advantages where the ensued advantages allocated under the existing insurance
schemes with other insurer can be brought down to Easy health insurance policy.

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Inclusions under Insurance Policy for Pregnant Women

A number of group insurance policies offered by insurance firms for working women envelop
maternity advantages and insurance. The inclusions under Insurance Policy for Pregnant
Women are:
 All pregnancy associated hospitalization costs,
 Before and after hospitalization costs for pre-determined number of days,
 Surgeries and pregnancy related complications and
 Expenditures incurred pre- and post-natal durations

Exclusions under Insurance Policy for Pregnant Women

Many insurance policies neither incorporate expenses met during monthly medical checkups
after pregnancy nor does it envelops costs incurred towards medications consumed during
pregnancy. Insurance Policy for Pregnant Women in India also does not constitute:
 Unanticipated events resulting in the termination of pregnancy for the initial few
weeks,
 Medical costs for pregnancies taking place during nine months of purchasing the
maternity insurance policy
The insurance firms offer these benefits under their group policies for corporate firm that is
subject to the condition of inclusion of minimum number of individuals working in the
organization.

Factors influencing the premium of Insurance Policy for Pregnant Women

The premiums forfeited under group insurance policies offered by Insurance firms that
incorporates maternity insurance are influenced by various aspects.
 First and foremost, the premium allocated under Insurance Policy for Pregnant
Women depends on the company's profile which is being insured. Besides its profile,
the sector under which it is functioning and its related risk factors are also taken into
consideration. In the FY 2007-08 around 3/4th of firms working in the sector of
Information technology, pharmaceuticals and manufacturing picked group insurance
scheme with maternity benefits.
 Other aspects that influences the premium of maternity insurance is the employee
profile, her age group, designation, etc and earlier health insurance assertion ratios
applicable to the firm.
 The last factor affecting premium is the frequency of utilization of maternity
insurance and other health policies by the firm's employees

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United Indian Insurance Company Ltd.

The United India Insurance Co was established on February 18, 1938. In 1972 the
general insurance industry was nationalized and afterwards 12 Indian insurance
organizations, the Indian arms of 5 international insurers, 4 cooperative insurance societies,
and LIC's general insurance operations in southern India merged together with the
organization.
At present the insurer has 1340 offices with a combined work force of 18300 workers and
caters to more than a crore policyholders. It specializes in a wide range of insurance products.

United India Insurance has been one of the prominent names when it comes to creating and
providing insurance products for big organizations such as the following:
 ONGC Ltd
 Mumbai International Airport
 GMR
 Tirumala - Tirupati Devasthanam
 Hyderabad International Airport
It has also been a leading name when it comes to providing insurance products to the rural
areas and has been at the forefront of implementing the Vijaya Raji Janani Kalyan Yojana that
covers 45 lakh women in Madhya Pradesh and the Government of India's Universal Health
Insurance Programme.

It has also played a leading role in implementing the Tsunami Jan Bima Yojana that covers
4.59 lakh families across 4 states as well as the National Livestock Insurance.

United India Insurance has also expanded its presence to 200 and more tier II and tier III
towns, and villages through its various micro offices.

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Policies for Women’s Health InsurancE

The concept of women health insurance may be defined as insurance policies that are
specifically designed keeping in mind their requirements and well-being. These plans also
come with additional facilities such as cashless hospitalization. These facilities are meant to
reduce the anxiety of the policyholders

Types of women health insurance

Nowadays the insurers, especially the private ones, are providing different options
when it comes to picking health insurance policies for women. Apart from the standalone
plans, women can nowadays also be covered in family plans. There are certain health plans
that provide special benefits related to critical periods in a woman’s life such as maternity.

Ladies can also be covered in personal accident plans and travel policies that provide health
cover in case of risks related to accident and traveling. People looking to get insurance for
their wives or partners can also look at the comprehensive insurance policies being provided
by the top insurers like Religare.

Nowadays critical illness health cover is also available for single mothers, working mothers,
married women, and single ladies. These plans cover women against major ailments such as
different types of cancer.

Benefits of women health insurance

Women often experience critical complications during important periods such as
pregnancy and at other times in their life. Hospitalization and medical treatment expenses are
going up on a daily basis – with a proper women health insurance policy these costs can be
properly taken care of and good treatment can also be guaranteed since most insurers have
the top doctors and hospitals in their networks.

When is the right time to take women health insurance?

As is evident from market trends, the cost of availing insurance normally goes up with the
increasing age of the policyholder. The insurers also increase the premium rates in respect to
the advanced age of the policy applicants. The period between early to mid 60s is referred to
as exponential curve of quick rises in prices of healthcare facilities.

It has been observed that with increasing age there is a greater tendency to contract critical
ailments such as blood pressure irregularities, diabetes, and arthritis. These play a crucial role
in increasing the premium to be paid by the policyholder.

Even though it is ideal to take a women health insurance policy as early as possible, experts
say that taking the insurance should not be delayed beyond 50 years. Since people also find it

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difficult to cope financially during the old age it is advisable to avail such a plan when the
policyholder is working and capable of paying the premiums regularly.

United India Insurance Company Limited (UIIC) is a leading General Insurance Company of
India with its head quarters in Chennai, India. UIIC is wholly owned by the government of
India. They have more than 72 years of experience in handling insurance business and three
decades of experience in handling non life insurance plans. With more than 1340 offices
spread across India United India Insurance Company covers more than 1 core policy holders.
With a direct premium income of Rs.5000 crore in the financial year 2009-10, United India is
a leading insurance Company in India. United India is also selected as one among the top
three insurance companies in India by Asia Insurance review. They offer various types of
Health Insurance or Mediclaim policies to suit every individual needs. These policies are
marketed by the companies well appointed agents or specialized brokers.

Types of Health insurance policies offered by United India Insurance Company Limited
Family medicare:
This policy covers all the members of a family under a single sum insured. This policy
entitles two adults and two dependent children between the ages of 3 months and 18 years. In
this policy the fixed cover is shared by all the family members.

Platinum:
UIIC’s platinum policy is designed for individuals aged 3 months to 35 years at the time of
taking a policy. The highlight of this policy is that there are no exclusions for specified illness
and pre existing diseases.

Gold:
United India Insurance Company offers the gold policy for individuals aged 36 to 60 years. In
this policy the insured member is entitled to the entire amount of the coverage.

Senior citizen:
As the name suggests, United India Insurance Company has designed the senior citizen
policy for individuals aged 61 to 80 years.

Top Up:
Top up is a policy designed by United India Insurance Company to provide an additional
cover to your existing policy in a very economical way.

Super Top Up:

Super top policy is similar to top up, the only difference is that in a super top up policy the
total amount of expenses in a year needs to go above the threshold level for the policy to be
effective while in a top up policy the expenses for a single treatment should be over the
threshold.

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United India Insurance Company offers the option of cashless and reimbursement facility to
its customers. It has been awarded the iAAA rating for three successive years for its claim
paying ability by ICRA (Investment Information and Credit Rating Agency) which makes
them the most desirable Health Insurance Company.

UIIC Gold Health Insurance

1. WHEREAS the insured designated in the Schedule hereto has by a proposal and
declaration dated as stated in the Schedule (which shall be the basis of this Contract and is
deemed to be incorporated herein has applied to UNITED INDIA INSURANCE COMPANY
(hereinafter called the COMPANY) for the insurance hereinafter set forth in respect of
person(s) named in the Schedule hereto (hereinafter called the INSURED PERSON) and has
paid premium as consideration for such insurance.

1.1 NOW THIS POLICY WITNESSES that subject to the terms, conditions, exclusions and
definitions contained herein or endorsed, or otherwise expressed here on the Company
undertakes that during the period stated in the Schedule or during the continuance of this
policy by renewal, if any insured person contracts any disease or suffers from any illness
(hereinafter called DISEASE) or sustains any bodily injury through accident (hereinafter
called INJURY) and if such disease or injury requires any such insured Person, upon the
advice of a duly qualified Physician/Medical Specialist/Medical practitioner (hereinafter
called MEDICAL PRACTITIONER) or of a duly qualified Surgeon (hereinafter called
SURGEON) to incur hospitalization/domiciliary hospitalization expenses for
medical/surgical treatment at any Nursing Home/Hospital in India as herein defined
(hereinafter called HOSPITAL) as an inpatient, the Company will pay through TPA to the
Hospital / Nursing Home or the Insured Person the amount of such expenses as are
reasonably and necessarily incurred in respect thereof by or on behalf of such Insured Person
but not exceeding the Sum Insured in aggregate in any one period of insurance stated in the
schedule hereto.

1.2 In the event of any claim(s) becoming admissible under this scheme, the company will
pay through TPA to the Hospital / Nursing Home or the insured person the amount of such
expenses falling under different heads mentioned below, as are reasonably and necessarily
incurred thereof by or on behalf of such Insured Person, but not exceeding the Sum Insured in
aggregate mentioned in the schedule hereto.

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A.Room, Boarding and Nursing expenses as provided by the Hospital/Nursing Home not
exceeding 1% of the sum insured per day or the actual amount whichever is less. This also
includes nursing care, RMO charges, IV Fluids/Blood transfusion/injection administration
charges and similar expenses.

B.ICU expenses not exceeding 2% of the sum insured per day or actual amount whichever is
less. C.Surgeon, Anesthetist, Medical Practitioner, Consultants, Specialists Fees D. Blood,
Oxygen, Operation Theatre Charges, surgical appliances, Medicines & Drugs, Diagnostic
Materials and X-ray, Dialysis, Chemotherapy, Radiotherapy, Cost of Artificial Limbs, cost of
prosthetic devices implanted during surgical procedure like pacemaker, orthopedic implants,
infra cardiac valve replacements, vascular stents. E.Hospitalisation expenses (excluding cost
of organ) incurred for/by donor in respect of organ transplant to the insured.
The amount payable less than 1.2 C & D above shall be at the rate applicable to the
entitled room category. In case Insured opts for a room with rent higher than the entitled
category as in 1.2 A above, the charges payable under 1.2 C & D shall be limited to the
charges applicable to the entitled category.

Expenses in respect of the following LIMITS per surgery RESTRICTED

specified illnesses will be restricted TO
as detailed below: Hospitalization
Benefits

a. Cataract, Hernia, Hysterectomy a. Actual expenses incurred or 25%

b.Major surgeries* of the sum insured whichever is less
b. Actual expenses incurred or 70%
of the Sum Insured whichever is
less

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 Insurance for Women

UIIC Platinum Health Insurance

1. WHEREAS the insured designated in the Schedule hereto has by a proposal and
declaration dated as stated in the Schedule which shall be the basis of this Contract and is
deemed to be incorporated herein has applied to UNITED INDIA INSURANCE COMPANY
(hereinafter called the COMPANY) for the insurance hereinafter set forth in respect of
person(s) named in the Schedule hereto (hereinafter called the INSURED PERSON) and has
paid premium as consideration for such insurance.

1.1 NOW THIS POLICY WITNESSES that subject to the terms, conditions, exclusions and
definitions contained herein or endorsed, or otherwise expressed here on the Company
undertakes that if during the period stated in the Schedule or during the continuance of this
policy by renewal any insured person shall contract any disease or suffer from any illness
(hereinafter called DISEASE) or sustain any bodily injury through accident (hereinafter
called INJURY) and if such disease or injury shall require any such insured Person, upon the
advice of a duly qualified Physician/Medical Specialist/Medical practitioner (hereinafter
called MEDICAL PRACTITIONER) or of a duly qualified Surgeon (hereinafter called
SURGEON) to incur hospitalization/domiciliary hospitalization expenses for
medical/surgical treatment at any Nursing Home/Hospital in India as herein defined
(hereinafter called HOSPITAL) as an inpatient, the Company will pay through TPA to the
Hospital / Nursing Home or the Insured Person the amount of such expenses as are
reasonably and necessarily incurred in respect thereof by or on behalf of Insured Person but
not exceeding the Sum Insured in aggregate in any one period of insurance stated in the
schedule hereto.

1.2 In the event of any claim/s becoming admissible under this scheme, the company will pay
through TPA to the Hospital / Nursing Home or the insured person the amount of such
expenses as would fall under different heads mentioned below, and as are reasonably and
necessarily incurred thereof by or on behalf of such Insured Person, but not exceeding the
Sum Insured in aggregate mentioned in the schedule hereto.
A. Room, Boarding and Nursing expenses as provided by the Hospital/Nursing Home not
exceeding 1% of the sum insured per day or the actual amount whichever is less. This also
includes nursing care, RMO charges, IV Fluids/Blood transfusion/injection administration
charges and similar expenses.
B. ICU expenses not exceeding 2% of the sum insured per day or actual amount whichever is
less.
C. Surgeon, Anesthetist, Medical Practitioner, Consultants, Specialists Fees
D. Anesthesia, Blood, Oxygen, Operation Theatre Charges, surgical appliances, Medicines &
Drugs, Diagnostic Materials and X-ray, Dialysis, Chemotherapy, Radiotherapy, Cost of
Artificial Limbs, cost of prosthetic devices implanted during surgical procedure like
pacemaker, orthopedic implants, infra cardiac valve replacements, vascular stents.

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 Insurance for Women

E. Hospitalization expenses (excluding cost of organ) incurred for donor in respect of organ
transplant to the insured.

The amount payable less than 1.2 C & D above shall be at the rate applicable to the entitled
room category. In case Insured opts for a room with rent higher than the entitled category as
in 1.2 A above, the charges payable under 1.2 C & D shall be limited to the charges
applicable to the entitled category.

(N.B: Company's Liability in respect of all claims admitted during the period of insurance
shall not exceed the Sum Insured per person as mentioned in the schedule)

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Insurance for Women

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 Insurance for Women

Married Women Property Act

An Act to explain and amend the law relating to certain

married women, for other purposes.

Preamble:-Whereas it is expedient to make such provision as

hereinafter appears for the enjoyment of wages and earnings
by women married before the first day of January, 1866, and for insurances on lives by
persons married before or after that day:

And whereas by the Indian Succession Act, 1865, (10 of 1865) 1 See. 4 it is enacted that no
person shall by marriage acquire any interest in the property the person whom he or she
marries, nor become incapable of doing any act in respect of his or her own property, which
he or she could have done, if unmarried:

And whereas by force of the said Act all women to whose marriages it applies are absolute
owners of all property vested in, or acquired by them, and their husbands do not by their
marriage, acquire any interest in such property, but they said Act does not protect such
husbands from liabilities on account of the debts of their wives contracted before marriage,
and does not expressly provide for the enforcement of claims by or against such wives;

It is hereby enacted as follows:-

The relevant provision of the Indian Succession Act, 1925 (39 of 1925)

 Extent and application.

[It extends to the whole of India except the State of Jammu and Kashmir.]
But nothing herein contained applies to any married woman who at the time of her marriage
professed the Hindu, Muhammad an Buddhist, Sikh or Jain religion, or whose husband, at the
time of such marriage, professed any of those religions.
And the [State Government] may from time to time, by order, either retro-reactively from the
passing of this Act or prospectively, exempt from the operation of all or any of the provisions
of this Act the members of any race, sect or tribe or part of a race, sect or tribe, to whom it
may consider it impossible or inexpedient to apply such provisions.

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 Insurance for Women

The [State Government] may also revoke any such order, but not so that the revocation shall
have any retrospective effect.
All orders and revocations under this section shall be published in the official Gazette.
Subs. by the Married Women's Property (Extension) Act, 1959 (61 of 1959), Sec. 2 (w.e.f. lst
March, 1960).
2. The original words 'G.G. in C" have successively been amended by Act 38 of 1920 the
A.0. 1937, and the A.0. 1950 to read as above.
3. The last paragraph rep. by Act 39 of 1925, Sec. 392 and Sch.IX.
4. Commencement

Rep. by the Repelling Act, 1876 (12 of 1876), Sec. 1 and Sch.

 Married women’s earnings to be their separate property.

The wages and earnings of any married woman acquired or gained by her after the passing of
this Act, in any employment, occupation or trade carried on by her and not by husband, And
also any money or other property so acquired by her through the exercise of any literary,
artistic or scientific skill, And all savings from and investments of such wages, earnings and
property, shall be deemed to be her separate property, and her receipts alone shall be good
discharges for such wages, earnings and property.

 Married woman may affect policy of Insurance.

Any married woman may affect a policy of insurance on her own behalf and
independently of her husband; and the same and all benefit, thereof, if expressed on the face
of it to be so effected, shall ensure as her separate property, and the contract evidenced by
such policy shall be as valid as R made

 Insurance by husband for benefit of wife.

A policy of insurance effected by any married man on his own life, and expressed on
the face of it to be for the benefit of his wife, or of his wife and children, or any of them, shall
ensure and be deemed to be a trust for the benefit of his wife, or of his wife and children, or
any of them, according to the interest so expressed, and shall not, so long any object of the
trust remains, be subject to the control of the husband, or to his creditors, or form part of his
estate.

When the sum secured by the policy becomes payable, it shall, unless special, trustees
are duly appointed to receive and hold the same, be, paid to the Official Trustee of the [State]
in which the office at which the insurance was effected is situate, and shall be received and
held by him upon the trusts expressed in the policy, or such of them as are then existing. And
in reference to such sum he shall stand in the same position in all respects as if he had been
duly appointed trustee thereof by a High Court, under Act No. XVII of 1864 [to constitute an
Office of Official Trustee], Sec. 10.

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 Insurance for Women

Nothing herein contained shall operate to destroy or impede the right of any creditor to be
paid out of the proceeds of any policy of assurance, which may have been effected with intent
to defraud creditors.

Notwithstanding anything contained in Sec, 2, the provisions of Sub-section:

(1) shall apply in the case of any policy of insurance such as in regerred to there in which
effected,-
(a) By any Hindu, Muhammadan, Sikh or Jain-
(i) In Madras, after the thirty-first day of December, 1913, or
(ii) In any other territory to which this Act extended immediately before the commencement
of the Married Women's Property (Extension) Act, 1959, after the first day of April, 1923, or
(iii) In any territory of which this Act extends on and from the commencement of the
Married Women's Property (Extension) Act, 1959, on or after such commencement;

(b) By a Buddhist in any territory to which this Act extends, on or after the commencement of
the Married Women's Property (Extension) Act, 1959:
Provided that nothing herein contained shall affect any right or liability which has accrued or
been insured under any decree of a competent court passed-
(i) Before the first day of April, 1923, in any case to which Sub-clause (i) or sub-clause (ii)
of Cl. (a) applies; or
(ii) Before the commencement of the Married Women's Property (Extension) Act, 1959, in
any case to which sub-clause (iii) of Cl. (a) or Cl. (b) applies.]
1. Renumbered as sub-section (1) of that section by Act 13 of 1923, Sec. 2.
2. The word 'Presidency" has been successively amended by the A.0. 1937 the A.0. 1950 and
the Adaptation of Laws (No. 2) Order, 1956.
3. The relevant provisions of the Official Trustees Ad, 1913 (2 of 1913).
4. Subs by the Married Women's Property (Extension) Act, 1959 (61 of 1959), Sec. 3 (w.e.f.
lst March, 1960). [(2) Notwithstanding anything contained in Sec. 2, the provisions of sub-
section (1) shall apply in the case of any policy of insurance such as referred to therein which
effected, -

STATE AMENDMENTS
Andhra Pradesh.- In its application to the State of Andhra Pradesh, in sub-section (2), for
'Madras" substitute "the State of Andhra as it existed immediately before the 1 st November
1956 or Madras". [Vide Andhra ALO, 1954 and Andhra Pradesh ALO, 1957.]

Dadra and Nagar Haveli- In its application to the Union Territory of Dadra and Nagar
Haveli-
(i) In Cl. (a) of sub-section (2) the following shall be added at the end or (iv) In the Union
Territory of Dadra and Nagar Haveli on or after the commencement of the Dadra and Nagar
Haveli (Laws) Regulation, 1963;"

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 Insurance for Women

(ii) In Cl. (b) after the words "any territory" the words "other than the Union Territory of
Dadra and Nagar Haveli" shall be inserted.
(iii) After Cl. (b) the following shall be inserted. (c) By a Buddhist in the Union Territory of
Dadra and Nagar Haveli, on or after the commencement of Dadra and Nagar Haveli (Laws)
Regulation, 1963;
(iv) In the proviso the following shall be added at the end "or (iii) Before the commencement
of the Dadra and Nagar Haveli (Laws) Regulation, 1963, in any case to which sub-clause (iv)
of Cl. (a) or Cl. applies.
[Vide Regulation VI of 1963, Sec. 2 and Sch. I,]

Tamil Nadu.- (a) In its application to the State of Tamil Nadu in Sub-section (2) for
"Madras" the words 'Tamil Nadu" shall be substituted [Vide Tamil Nadu, A. L.O. 1970.]
(b) Affect the liability of a husband for debts contracted by his wife's agency expressed or
implied.)

 Married women may take legal proceedings.

A married woman may maintain a suit in her own name for the recovery of property of any
description which, by force of the said Indian Successions Act, 1865 (1 0 of 1866) or of this
Act, is her separate property; and she shall have, in her own name, the same remedies, both
civil and criminal, against all persons, for the protection and security of such property, as if
she were unmarried, and she shall be liable to such suits, processes and orders in respect of
such property as she would be liable to if she were unmarried.

 Wife’s liability for postnuptial debts.

If a married woman (whether married before or after the first day of January, 1866) possesses
separate property, and if any person enters into a contract with her with reference to such
property, or on the faith that her obligation arising out of such contract will be satisfied out of
her separate property, such person shall be entitled to sue her, and to the extent to her separate
property, to recover against her whatever he might have recovered in such suit had she been
unmarried at the date of the contract and continued unmarried at the execution of the decree:

Provided that nothing herein contained shall-

(a) Enter such person to recover anything by attachment and sale or otherwise out of any
property which has been transferred to a woman or for her benefit on condition that she shall
have no power during her marriage to transfer or charge the same or her beneficial interest
therein, or
(b) Affect the liability of a husband for debts contracted by his wife's agency expressed or
implied.]

1. Subs. by Act 21 of 1929, Sec. 2, for the original proviso.

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 Insurance for Women

 9. Husband not liable for wife’s ante nuptial debts.

A husband married after the thirty first day of December, 1865 shall not by reason only of
such marriage be liable to the debts of his wife contracted before marriage, but the wife shall
liable to be used, for, and shall, to the extent of her separate property, be liable to satisfy such
debts as d he had continued unmarried.
Provided that nothing contained in this section shall invalidate any contract into which a
husband may, before the passing of this Act, have entered in consideration of his wife's ante
nuptial debts.

Why go for it?

• A MWP insurance policy is free from creditors and court attachments. The welfare of wife
and children are protected with utmost care
• A policy under MWP Act is a good feature for families that have debt
• MWP act is applicable for all married women of all religions
• There is no need for creating a Trust under the Trust Act. The policyholder has the option to
change the trustees at any point in time

Why not go for it?

• The policyholder of a MWP policy loses all control over the policy with the exception of
paying premiums. The policy becomes a trust property (wife and/or children)
• There can be no changes to the policy without the consent of the beneficiaries
• The beneficiaries of the plan, once declared, cannot be changed at any time
• The proposer cannot take any loan or assign the policy to another person
• The policy maturity, surrender value will go to the trust (and hence the beneficiaries only).

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Insurance for Women

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 Insurance for Women

ARTICLES

Global Consumer Insurance

Survey 2012 India by ERNST &
YOUNG

With the rise in affluence and increased product awareness, the middle class is fast emerging
as the most lucrative segment of the Indian market for financial services companies. India has
a large working population, with higher disposable income than in the past and therefore a
greater propensity to buy products to meet their growing aspirations. However, due to rapidly
evolving markets, customer loyalty to brands is fickle and very much dependent on price
points, customer service and innovative product offerings. Only one in five Indian consumers
say they are “extremely loyal” to their favorite brands.
In light of this evolution, companies need to reevaluate their long-held beliefs about the
consumer in the Indian markets. Our research uncovered strong evidence that customer
behaviors in India are changing and that some of these beliefs have become outdated. As a
result, we believe that insurers in this market will need to think differently if they are to
continue to be successful in attracting customers.

Indian life and pensions key findings

 Consumers surveyed in India are surprisingly well aware of their needs. Seventy-four
percent of respondents indicate that they conduct detailed research before buying life
and pension’s policies, far more than in the US (31%), the UK (37%) or China (44%).
As buyers take more control of the buying process, providers will need to ensure they
understand their customers better, tailor products to customers’ needs and provide
details about the products in a simple, transparent manner.
 Customers still have a strong need for personal interaction when buying life or
pension products, with 94% of respondents considering it an essential part of the
buying process. The trend is slightly more marked here than in China, and is much
stronger than in the UK and US. Insurers will need to ensure their sales channels are
equipped with the right expertise to help customers make appropriate choices to meet
their needs and to close the purchase process.
 Customers surveyed in India are willing to buy more. To maximize opportunities,
insurers need to build trust and make it convenient for them to do so. In addition,
customers have become accustomed to rewards for loyalty from other industries and
increasingly expect the same from insurers. To increase their share of customers’
wallets, insurers must reward loyalty.

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 Insurance for Women

 Persistency levels are lower in India compared to other countries. Seventeen percent
of Indian consumers say they have switched providers in the last five years —
considerably more than the global average from our survey of 10%. However, the
survey provides evidence that if insurers can connect better with customers and
respond flexibly to their needs, they will be able to increase retention and maximize
customer lifetime value.
Indian non-life insurance key findings
Our research focused primarily on consumer behavior in buying personal product lines. The
response to our survey shows that in the Indian non-life insurance market, consumers’
motives are surprisingly similar to those of their peers in other markets around the world.
 Purchases of non-life insurance products in India are mainly driven by convenience
and value — in other words, the right product at the right price. Convenience,
however, is a complex proposition. Customers must be able to research and buy
easily, a trend that has primarily been driven by the growth of online websites. But
convenience also implies avoiding problems later on — with cover, service or
technology. For this reason, some customers still rely on tried and tested channels
such as agents, family advice or trusted brands to guide their purchasing decisions.
 Consumers are increasingly moving online. Currently, 31% of respondents use a
range of online channels for research, although only 11% indicate that they purchase
online. This research/sales lag indicates that for the moment, concerns about
reliability and unfamiliarity with the online setup still outweigh its benefits in terms of
speed and flexibility for Indian customers. Insurers will need to develop their online
offering, but as a component of an integrated channel management strategy.
 Pricing is not the most important criterion for consumers when purchasing an
insurance product. Only 33% of survey respondents indicated that price was a factor
in provider selection, which is behind other factors such as brand (69%), customers
service (43%), and very close to convenience (32%) and financial stability (31%). As
a result, insurance providers will need to focus on creating differentiated product
offerings and service propositions to build a sustainable brand.
 Customers are willing to purchase additional products from the same insurer. Sixty-
nine percent of respondents said they would purchase additional products from their
current provider, with convenience and better service being the primary drivers.
Providers will need to focus on leveraging existing customer information to
understand customer needs and offering targeted propositions in the right way.
 Indian customers generally prefer to stay with one insurer as it is more convenient.
However, the number of customers switching providers is likely to rise in the future.
Insurers will need to clearly identify target customer segments and understand their
switching propensities as well as the costto- serve. This will allow them to
communicate better with their more valuable customers and boost retention and
profitability.
We hope you will find this research useful in shaping your customer strategies and
considering how you shape your business going forward.

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 Insurance for Women

If you would like more information, and to review the detailed findings, please contact your
usual client service partner, or go to www.ey.com/insurance.

How to manage your health insurance costs

Medical care has become an expensive proposition indeed, particularly over the last few
years with health care inflation touching up to 18%. This has led to rise in health insurance
premiums as well. Moreover, rising medical treatment costs also eat into the real value of
your sum assured.

Says Arun Balakrishnan, CEO, and Berkshire Insurance, “There are certain steps that one
must take to protect the sum assured and ensure that there is sufficient coverage for the
insured. The first step is to start early. As one grows older and more susceptible to ill health,
the associated risk and therefore the premium rises. The benefits available under the policy
also get restricted. Invest in a health policy at a young age to save on premiums in the long
run”
Some policies hike the premium for the following year if you have made a claim in a
particular year. This makes it important to do one`s research, comprehend the policy terms
and select a product with a transparent pricing structure.
Adds Mr. Balakrishnan, “Insurers offer a No Claim Bonus on claim free years. Ask for this
benefit to get lower renewal premiums in lieu of claim free years. You can also consider
changing your voluntary deductible. This is the threshold amount you pay out of your own
pocket before the insurer settles the claim. Raising your voluntary deductible can lead to
lower premiums. However, before doing so, take into account your ability to pay up the
amount without facing major financial difficulty”
Lifestyle changes like quitting smoking too can have a significant impact on the premium one
pays.
Finally, one should do a thorough research and make an apt selection as per one`s needs.
Once the selection is made, many websites offer the facility of purchasing a policy online
most conveniently at the click of a button.

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 Insurance for Women

Women-specific insurance plans are in vogue. Should you go for

them?

Source : articles.economictimes.com
ET Bureau Jun 22, 2012.

MUMBAI: Parents looking to save for their children's education have always been the
biggest target group for life insurers, followed by those planning for retirement. Of late,
however, companies have started focusing on another category of prospective policyholders -
women.
The latest entrant in this space is HDFC Life, which unveiled a Ulip customized for women
on Friday. "The contribution of women to economic activity in India has seen a significant
rise over the last decade. Financially independent woman who actively manage their financial
goals is a mega trend of this decade," says Sanjay Tripathy, executive vice-president and
head, marketing, direct channels, HDFC Life. He insurer's product is being positioned as a
instrument for women to help meet their financial goals, in addition to catering to her critical life
stage needs - motherhood, diseases that women are prone to certain ages (like cancer) or loss of
spouse.
Depending on the option chosen, it provides a three-year premium waiver benefit as
well as cash pay-out in case of certain occurrences like diagnosis of cancer or death of
spouse.
Prior to this, the space has seen two women-centric insurance products - a critical
illness rider from AEGON Religare Life and Bajaj Allianz General's critical illness cover - in
the last four months.
PSU behemoth LIC, too, offers a women-specific product named Jeevan Bharti-I,
which covers congenital conditions, apart from offering a three-year premium holiday.
Congenital disabilities mean conditions infants may be born with. These covers pay for
expenses incurred by the woman towards her child's treatment in such cases.
Most regular policies and critical illness covers exclude congenital diseases from the list of
ailments eligible for claim. Now, women-specific covers may seem like tailor-made products
capable of taking care of all your needs.

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 Insurance for Women

However, like in case of all financial products, you need to scrutinise its features,
terms and conditions, charges and of course its compatibility with your goals before making
the purchase.

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 Insurance for Women

CONCLUSION

Nature has created men and women differently but their reason to buy life insurance
remains broadly the same. Both men and women buy life insurance to protect their family,
replace lost income in case he / she dies, provide for own retirement, fund long-term needs
such as children's education and marriage and to pay off mortgages. But here comes the
difference. Though the needs are the same, men and women think and behave differently in
many aspects of life, including financial planning and protection. The financial needs of
women become different because they have higher life expectancy than men, which results in
more women living alone after their partner is gone.

World over it has been found that women have either no or little life insurance. Max New
York Life - NCAER India Financial Protection Survey revealed that the same is true for India
also. Of the life insurance owners in India only 14% are women. Is that women do not require
life insurance or is it lack of awareness of the need for life insurance for women? Even in a
highly developed market like US, it has been found that though 59% of the women own life
insurance as compared to 64% of the men, the average death benefit on men is nearly double
that for women.

Homemaker is one large group of women in India. Let us focus first on the needs of this most
important group. Many a time it is argued that homemakers do not require life insurance as
they are not the earning members and their loss would not result in financial stress. However,
it has been found that it is not true. In fact, it has been found that it adds up to significant cost
to get the services of homemakers through third party and hence require life insurance for
homemaker women also.

Modern women, who is an earning member and an equal partner in managing the finances of
the household, requires life insurance as much as the earning male members. It has been
found that when it comes to planning for long-term needs like children education, marriage
and other social events, women are better planners and take the lead in the household. But to
meet such need the instruments opted by them are not appropriate. Women should consider

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bundled life insurance products that offer both protection and wealth creation to meet such
needs. Unit Linked Insurance Policies (ULIP) and other endowment policies are found to be
the best tools for such needs.

The women in two income households should also consider taking financial protection cover.
She should consider if anything happens to her and the income she generates, would her
family be able to maintain the standard of living. Would her children be able to achieve their
education goals? They should consider taking protection cover through a combination of term
and bundled products, so that if anything happens to her, the life could go on as earlier.

As women have higher life expectancy, they also need to plan for their financial security for
those years when their caring partner would not be there to provide for their financial needs.
Women should consider retirement planning instruments, which continue to give them
annuities (pension) till their last days. Several retirement plans and whole life plans are
available in the market. The need for life insurance is most pronounced in the case of single
women heading a household. This could have happened due to divorce or the death of spouse.
As a single parent, she may be the sole breadwinner, responsible for the support to her
children and hence must invest in financial protection insurance so that the life insurance can
replace the income she is bringing to the household.

Do single women, with no children to support, require life insurance? She may not have
anyone to support but may still have loans and mortgages. These obligations, which could fall
on parents or other loved one, can be met through life insurance. Life insurance is also
important to protect her old age and cover against the risk of living too long.

It would not be incorrect to say that for women at any life stage and of any demographic
profile, life insurance is important to meet her financial protection and long-term wealth
creation needs. It is never too early to invest in life insurance and hence the day you start
earning, you should start investing in life insurance. At the same time it is never too late. If
you have not started, the cost of getting financial protection and creating corpus to meet your
financial needs would be higher, but it is never too late to start.

The women of all age groups and of every profile should consider her needs, consider income
and expenses and must allocate a certain portion of disposable income towards buying
appropriate life insurance. The best option is to consult an expert financial advisor and take
immediate action on the suggested financial plan to live a stress free life.

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BIBLIOGRAPHY

 www.investopedia.com/university/insurance/insurance11.asp4
 www.uiic.co.in
 www.licindia.com
 www.apnapaisa.com › Insurance
 www.licinsurance.com/jeevansukanya.htm
 www.insuremagic.com/content/PlanInfo/Life/women_plan128.asp
 www.vakilno1.com/bareacts/.../The-Married-Womens-Property-Act

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