Top 3 Things to Consider While Buying Term Insurance for Working Women

Working women play an active role in managing both their careers and their families. With growing responsibilities, it becomes important to plan not just for regular expenses but also for future uncertainties. One practical way to do this is by having a term insurance plan that protects your family financially if something happens to you.

It does not matter if you’re the primary earner or simply contribute to the household income; term insurance can help your family maintain their standard of living in your absence. In this blog, we cover the key things to look for when choosing a term insurance plan that suits your needs.

Women make up 49% of India’s total population. The role of women in running the family is equally important as that of a man. Therefore, ensuring financial security for women is essential, whether they are working professionals or homemakers.  Here are some of the reasons why women must have term insurance cover:

• The term plan offers high coverage at an affordable premium. With a term insurance cover, you have peace of mind. If something happens to you, you know your family's future is secure.

• Your family maintains a certain living standard at present, in which you contribute equally. You need to have a term plan to ensure your family continues to live the same standard in case of an unfortunate event.

• Health data shows a rise in illnesses specific to women, such as breast and cervical cancer. A term plan with cover for terminal illnesses is even more important compared to men.

• Home-makers may contribute income to the family (directly), but they are also an important pillar of the family. They take care of so many things in the house that it is almost impossible to list them down. If they are no longer around, a term plan can help cover the cost of external support.

Buying Term Life Insurance for Women: 3 Key Tips

Choosing the right term life plan can feel overwhelming, especially with so many options available online. But if you know what to look for, the process becomes easier and more transparent. As a working woman, your financial decisions have a direct impact on your family’s stability. That’s why it's important to focus on key factors that affect your plan’s reliability and effectiveness, starting with the insurer’s claim track record and service quality.

• Claim Settlement Ratio: You should check the claim settlement ratio of the company from which you plan to buy the term plan. Canara HSBC Life Insurance has a claim settlement ratio of 99.52% for the FY 2025-2026.
  
  
  1. A higher claim settlement ratio means a better chance your nominee will receive the benefits without delays or complications.
  2. Always look for insurers with a ratio above 95% for reliability.
  3. You can check these figures on the IRDAI Annual Report or the insurer’s official website.
  4. A consistently high ratio over the years indicates the insurer honours claims responsibly, even in tough situations.
• Speed of Claim Settlement: You also need to evaluate the insurance company based on the speed of claim settlement. As per regulatory bodies, valid claims must be settled within 30 days. However, the best life insurance companies, including Canara HSBC Life Insurance, offer one-day claim settlements under the InstaPromise initiative for eligible policies.
  
  The primary eligibility criteria for policies under InstaPromise are:
  
  
  1. All related documents for the claim have been submitted with the claim form
  2. The total payable sum assured is ₹ 1 crore or less
  3. The policy has been active for a minimum of three continuous years, and all premiums have been paid
  4. The claim does not require investigation on the part of the insurer
• Claim Paying Ability of The Insurer: You also need to check the claim-paying ability of the insurance company. Independent rating agencies assess this, and their ratings can help you make an informed decision.
  
  Canara HSBC Life Insurance enjoys a Care AAA rating, indicating a strong claim-paying ability.
  
  
  1. A higher rating shows that the insurer is financially stable and capable of settling claims reliably.
  2. Look for ratings from trusted agencies like CARE Ratings.
  3. “AAA” is the highest rating, suggesting a very low risk of claim default.
  4. Consistent ratings over multiple years reflect long-term financial health.
  5. These ratings are especially important for long-term policies like term insurance.

Five Features of a Term Insurance Plan for Women

When choosing a term insurance plan, it’s important to look beyond just the premium and sum assured. Some plans offer additional features that can enhance the value of your cover over time. 

Here are five such features that can be especially helpful for women, depending on their life stage and financial responsibilities. 

• Terminal Illness Cover: In the last few decades, health conditions like breast and cervical cancer, which are specific to women, have become very common. As per stats, 14% of cancers in Indian women are breast cancer. iSelect Smart360 Term Plan by Canara HSBC Life Insurance provides you with cover against such critical illnesses. Once you are diagnosed with a terminal illness, the sum assured is paid to you.
• Option to Increase the Cover: With the increase in your family size, your responsibilities and liabilities increase, for instance, taking care of the educational expenses of your child. The cost of education is expected to rise over time. If you die, you would want your child to continue the best schooling. For this, the iSelect Smart360 Term Plan by Canara HSBC Life Insurance gives you the option to increase your cover periodically.

While buying the term plan, you can select the 'Increase Coverage’ option. Under this, your cover will increase 5% every year (at simple interest), with a maximum increase of 100% on the original sum assured. For example, at the time of purchase, the sum assured was ₹50 lakh. It will increase 5% every year, and in the 20th year, your sum assured will be ₹1 crore. It will remain fixed at ₹ 1 crorepost. It is an easy way to keep up with inflation.

• Lifetime Cover Option: A regular term insurance plan gives you coverage only till the policy tenure, usually 10, 20, or 30 years. When you select the ‘Life Plus’ option under the iSelect Smart360 Term Plan by Canara HSBC Life Insurance, you get lifetime coverage up to 99 years of age. The coverage age is far above the average age of death for women. It ensures that even after your natural death, your nominee receives the sum assured, allowing you to leave a financial legacy for your loved ones.
• Joint Life Cover: iSelect Smart360 Term Plan by Canara HSBC Life Insurance gives you the option to add your spouse to the same plan. If you buy two-term plans, you need to pay the double premium amount. A joint life cover offers you a discount on the rates for your spouse. You both will be covered for your separate sum assured throughout the policy term. In case of your death, the sum assured is given to your spouse, and the policy continues with the reduced premium.
• Regular Income Pay-out Feature: You get to decide how you want to receive the death benefits - as a lump sum, monthly income, or as a combination of both. A regular income is a great way to ensure your family does not go through a financial crunch in your absence. You can either have a fixed monthly income or a level-up option, where the payout will increase by 5 or 10% per annum.

If you are a working woman, a regular payout will help take care of the monthly expenses. If you are a homemaker, the regular payout can take care of the household help your family will need from outside.

Conclusion

Securing term insurance is a smart move and not something to delay. It ensures your family stays financially stable, even if you’re not around to support them. Taking this step now puts you in control of your future.

Women must realise the importance of getting themselves insured and should not wait for the right time or someone to guide them through the process. Start early, choose a plan that fits your life goals, and take charge of your financial security. The sooner you act, the stronger your safety net becomes.