Empowering Mothers: Crucial Role of Term Insurance for Every Mother

By: Santosh Agarwal, Chief Business Officer - Life Insurance, Policybazaar.com | Monday, 13 May 2024

Santosh Agarwal, the Chief Business Officer of PolicyBazaar.com, holds 14 years of work experience in the Finance sector. She consistently emphasizes the significance of women purchasing term insurance. Through her leadership, Santosh actively promotes and advocates for women’s financial empowerment in the insurance sector.

Mothers are as diverse as the roles they play in shaping an individual’s life. From being a caregiver and nurturer to breadwinner to a lifetime of support – they wear multiple hats and yet, remain equally crucial at every stage of life. Some mothers are homemakers and spend their lives nurturing families. Some balance their roles as caregivers along with a demanding workplace. Alternatively, some choose a hybrid path by taking care of families and having the flexibility of being self-employed.

Mothers relentlessly embrace every challenge when it comes to securing their dependents. Therefore, it is quite a natural extension of their role to invest in adequate term insurance to ensure the continuity of care in their lifetime and beyond. While nothing can quite compare to a mother’s presence, at least a financial security net cast upon the children ensures that they are well taken care of in her absence.

With Mother’s Day around the corner, it’s essential to recognize the role of term insurance for every mother who wants her dependents to be financially secure in this uncertain world.

Insurance for Every Mother

The very first instinct of every mother is to protect her child. This is why, a term insurance plan is a must for every mother irrespective of whether she is a homemaker, a working professional, a freelancer, or an entrepreneur.

Homemakers: There is a common myth that term insurance is only for the breadwinner of the family and not for homemakers. This argument stems from the fact that if something happens to the breadwinner, only then there will be financial implications that could affect the future of the family. However, this argument is fundamentally flawed. While homemakers do not bring in a conventional paycheck, that does not take away anything from their contribution to the family. Homemakers perform the diverse roles of primary caregivers to their children, managers of the household, support to elderly parents, and so on. Their absence would require all these roles to be filled and this would cause significant financial outlay.

Term insurance for the homemaker mother will, to some extent, help the family lead their lives without drastic compromises in her absence. Of course, even if some of her roles are filled by ‘paid help’, there are so many immeasurable contributions that would never be replaced in her absence.

Working Moms: Life as a working mom is a tough balancing act because this is where nurturing a family intertwines with pursuing a career. Only they know the struggles they go through with that daily whirlwind of responsibilities on both, the home and the work front. Yet they juggle the two roles for themselves and the bright future of their families. So they must protect that future through term insurance. Whether they are the primary breadwinner or are adding to the family income, their absence will add a lot of strain on the household finances. Many life goals of the children may get in jeopardy. By opting for term insurance, working moms can ensure that even in their absence, their beloved children and their families can continue to live comfortable lives and achieve the life goals that they envision for themselves.

It would not be an understatement to say that in many Indian households, working moms may even require a larger life cover in proportion to their income than working fathers because of the extent of their contribution to their family.

Entrepreneurs and self-employed mothers: Self-employed and entrepreneur moms navigate the intricacies of running their businesses while balancing family responsibilities. After all, they are the backbone of their businesses, often responsible for generating income and supporting their families. While they may not have a conventional monthly salary slip, fortunately, it no longer limits them from securing a term insurance plan. The industry is evolving and accommodating the needs of a diverse consumer segment. Since the category of self-employed individuals continues to expand at a rapid pace, there are special plans available for them that require no income proof. Instead, the proof of income tax returns is an acceptable norm for the self-employed to obtain term insurance now.

Entrepreneurs and self-employed mothers in India contribute hugely to household income. So, in case of their untimely demise, the insurance plan can help replace their income. The family can use it for their life goals like children’s education. A part of this income can also be used to ensure the continuity of her business in her memory and keep the legacy alive.

Every mother has a huge impact on her children’s future. They must secure their family's financial future and by investing in term insurance, they can ensure that their loved ones are protected and provided for.