Way back in the 1970s, a Bengali novel created ripples in literary circles. The story revolved around a young widow who lost her husband at the age of 17 and was driven away by her inlaws.

She had a box of jewels that she treasured. Finally, her granddaughter donated all the jewellery to a revolution.

Half a century later, as I write on what insurance can mean to a single lady/mother, I am reminded of that famous novel.

We have come a long way since then — parents are encouraging women to pursue higher education and with their growing capabilities, they are able to earn and contribute to the well-being of their homes too. 

Considering these facts, it seems only obvious that women need life insurance as a financial back-up, in case of a medical contingency, for instance.

The reason to go in for life insurance is more compelling if the woman has dependants and is single, unmarried, divorced or widowed.

A single mother has no option but to keep her finances insulated from any unforeseen event.

Considering people have nuclear families, it is more important to be financially independent and make provisions for your dependants in case of your absence due to death.

How to choose a product A look at the risks that single women/mothers should consider for coverage:

1) Risk of contingency to protect the dependants — can be parents and children.

2) Coverage against critical illness.

3) Protection covers for normal illness/surgery — Mediclaim kind of coverage.

Apart from these, they should consider some long-term saving-oriented insurance products to cover needs, such as child’s education and retirement funding.

A single lady can go for products like a pure long-term term insurance cover that comes very cheap and can be bought with disability benefits in case of an unfortunate accidental event. Ideally, such a cover should never be bundled with any savings as the purpose of these two products is entirely different.

Critical illness A cover for various critical illnesses should also be considered. While such comprehensive covers may appear a little costly, they are worth the cost. Most of these critical illnesses are curable with proper treatment in good hospitals that entail huge cost. The insurance policy can take care of these expenses. Some companies have introduced standalone cancer covers with low premiums that single women can consider.

‘Traditional products’ and ULIPs offer the benefit of risk coverage and can help you save some money too.

Remember while buying a cover, there is nothing like a right or wrong company/product. Just ensure that the money you invest will give reasonable returns in accordance with your needs.

Never buy in haste or under duress. You must ask questions, take time, do your own researches and finally buy only when you are convinced.

The writer is Chief Distribution Officer, AEGON Religare Life Insurance

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