What Are The Benefits Of Life Planning For Women
Traditional roles are evolving, with an increasing number of women participating in the financial support of their families.
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What Are The Benefits Of Life Planning For Women?
Homemakers manage household expenses if the primary earner encounters an unexpected situation. They face challenges in maintaining the household if there is no consistent source of income. Traditional roles are evolving, with an increasing number of women participating in the financial support of their families. The benefits of life planning for women are manyfold. But, women should understand the importance of insurance.
Why Is Life Planning Necessary For Women?
Life planning is a plan that provides for daily expenses for your dependents in case of your untimely death. It is particularly beneficial for women as it provides a financial net and takes care of the expenses for your family. Of late, women are working towards financial liberation and exploring different life insurance policies and investment avenues. It will help them gain economic independence in case of the untimely death of their partner.
What is Life Planning In the Right Sense?
The human aspect of financial planning is life planning. It starts from what is important to you in a general sense and narrows it down to what is very important to you. It reiterates the necessity of money to live your life to the fullest.
What Comprises of Life Planning?
Life planning as financial planning involves the process of understanding your financial position and building a plan to secure your future. It includes investment, taxes, savings, retirement, estate, and lastly insurance. Financial planners help you chart a financial plan for your life.
Among these investment options, insurance is important for women. It helps to diversify the investment portfolio and provides death benefits in case of any unforeseen contingencies. It also provides tax benefits and risk mitigation. It provides a strong financial foundation and provides for your rainy days.
Suppose you earn a lot and fall in the higher income bracket. If you have enough towards retirement contributions, purchase a cash-value life insurance policy. It will generate tax-deferred income. When you are in dire need of cash, withdraw the money without paying tax. You are simply getting back your money but without paying taxes.
Why Are Women Less Insured Compared to Men?
Usually, women are comparatively less insured compared to men. LIMRA- a worldwide association, says women are 10% less insured than men. The reasons for that may be:
- Life planning is confusing and time-consuming.
- Many women don't earn money and depend on their partners for expenses.
- Life insurance policies are complicated.
Even though they think insurance is an extravagance, they also understand in the absence of a breadwinner, insurance will provide for their expenses. You may not like to think what your loved ones will do if your partner is not around. It is wise to plan and get life insurance to provide for the rainy season of your life.
Let us know the benefits of life planning for women.
Multiple benefits make life planning important for women. They are:
Investment Portfolio Diversification:
In simple terms, this means sanctioning your money among different investments. For example, to help reduce risk, you select stocks, real estate, mutual funds, bonds, and/or life insurance to invest in. One investment's excellent result can easily offset another.
Peace of Mind:
Life insurance can settle debts, provide income for the deceased's dependents, and even pay medical expenses. Whether you are an income earner or a homemaker, the policy should ensure that your beneficiaries are taken care of.
Financial Support on Serious Illness:
No matter what precautions, however deliberate, you cannot completely avoid an unfortunate event. Certain odds like serious illnesses may visit you and deprive you of your life. Should you procure an insurance policy, it is meant to pay medical expenses in this case. The policy may assure you some cash if you become incapable of earning due to serious illness.
That Debt Does Not Burden Your Family:
If a worst-case scenario arises, your dependents will not go through any financial disasters. Life insurance can erase all debts from your family in case of your demise. Life insurance policies take care of daily sustenance and funeral expenses.
Protection For Older Age:
Your spouse and children are not the only dependants you have; should your parents live with you, they too will benefit from your life insurance policy. It is excellent tool which helps you to pay back for all your parents have done for you.
Recapitulate:
A life plan is very essential for women. It helps you realize your dreams. It provides money when the breadwinner is absent. You need to have a mix of investment options in your investment basket. It will pay off your debts, provide money in case of your absence, and take care of responsibilities. A life plan will help you realize your needs and give emphasis on the most important ones. The right mix of stocks, life insurance, health insurance, and bonds will provide you with an excellent financial plan for securing the future. When done right, a life plan can be the right financial plan.