Buy Term Life Insurance for Single Women in India

Financial freedom is important for everyone, especially women. A term insurance plan is an essential component of financial planning, particularly for single women who frequently have additional responsibilities. It gives security and stability for their families throughout their absence.
Term insurance has become increasingly important as more women enter the workforce and choose to remain single for longer periods of time. It is not only necessary for those with spouses and children, as is commonly believed. Starting early with a term plan allows women to plan ahead and be prepared for future life events.
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Insights into Term Plan for Single Women
Here is an overview of term insurance plan for single women:
What is Term Insurance?
Key Features of Term Insurance for Single Women
Affordable Premiums
Term life insurance is frequently the most cost-effective sort of coverage.
Fixed Coverage
The policy is valid for the agreed-upon duration, which could be anywhere from 10 to 30 years or more.
No Cash Value
It has no investment component, thus it is just used for protection.

Why a Term Insurance is Necessary for Single Women?
Consider a term insurance plan, especially if you are undecided. Here's why it's necessary and not just another option:
Offering a Financial Shield
Single working women frequently assume financial responsibility for their family, assisting aging parents and siblings. In such instances, obtaining a term insurance policy is critical to ensuring financial security for your dependents if something happens to you.
Supporting Elderly Parents
If you help your elderly parents, a term insurance coverage can serve as a financial safety net for them. If anything happens to you, the insurance payout could cover your necessities, such as medical bills or living expenses.
Settling Debts
Loans make it easier for single women to pursue their educational and entrepreneurial ambitions. However, if anything unexpected happens, the duty for debt repayment rests on dependents' shoulders. A term plan can help reduce this strain by settling outstanding obligations and relieving your family's financial concerns.
Protection from Health Risks
The rise in stress and pollution has resulted in an increase in chronic diseases among women, including deadly ailments like breast cancer. Choosing a term plan with a Critical Illness Rider can protect you from such health risks and secure your future.
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Financial Challenges Faced by Single Women
When discussing the financial challenges faced by single women, several points stand out:
Income Disparity
Single women sometimes face a gender pay gap, earning less than their male colleagues for equivalent job tasks, which might limit their financial resources.
Increased Responsibility
Single women may be the sole providers for their children or elderly parents, putting significant financial strain on their household.
Retirement Savings
Single women may struggle to save enough for retirement due to lower incomes and work breaks (for example, childrearing or caregiving).
Lack of Financial Literacy
Some single women may not have received financial education, making it difficult to negotiate investments, savings, and budgeting successfully.
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How to Choose the Right Term Insurance Policy?
Selecting the appropriate term insurance coverage requires taking into account some crucial factors. The following are important things to remember:
1. Determine Your Needs
Before looking at insurance, assess your needs regarding coverage amount and financial status. Consider your income, debts, upcoming commitments (like your children's education), and other financial duties.
2. Determine the Length of Coverage
Determine the quantity of coverage that will cover your present and future obligations based on your financial assessment. A common method is the DIME formula:
- Debt: Consider your debts, such as student loans, mortgages, and personal loans.
- Income: Multiply your annual income by the number of years your family or dependents may require assistance.
- Mortgage: If you own a property, consider your mortgage debt.
- Education: Consider any future educational costs for prospective children or other dependents.
3. Examine Policies
Never accept the first policy that you come across. Use online comparison tools to evaluate various term insurance policies based on their features, prices, coverage, and exclusions.
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Why Should Single Women Opt for a Term Plan with Return of Premium?
Opting for a term insurance with a return of premium (TROP) can be a smart financial decision for single women. Here are some key reasons why:
No Loss of Money
A basic term life insurance plan with risk covers only provides a death benefit. If you outlive the policy term, you lose the entire invested amount. TROP handles this information and ensures you receive your premium money back.
Promised Refund
With the exception of the death and maturity benefits, TROP does not offer any market-based savings or investments. As a result, the policy's guaranteed return amount for life insurance and the guaranteed return of premiums are both fixed.
Flexible Premium
TROP allows policyholders to select their desired premium payment frequency, providing flexibility in premium payment. They can choose from single, quarterly, monthly, half-yearly, or annual payments.
Adaptable Return
TROP policyholders can take advantage of the returns according to their timetable. The maturity benefit may be paid in full, in monthly instalments, or in a combination.
Range of the Resurrection
If you fall behind on your premium payments, TROP plans might be reinstated five years after the last payment. To prevent a lapse, the insurance automatically becomes paid-up if you don't pay by the end of the grace period.
Factors to Consider When Choosing a Term Insurance Plan
With a wide variety of term insurance plans available, it’s crucial to consider several factors to ensure you’re selecting the best one for your individual needs. Here are key aspects to look at:
Coverage Amount
The most important aspect of term insurance is determining the right coverage amount. Consider your financial obligations—such as debts, living expenses for dependents (if any), and long-term financial goals. Many financial experts recommend choosing coverage that’s at least 10-12 times your annual income.
Term Length
The length of the term you choose should align with your long-term financial goals and liabilities. If you plan to retire in 20 years, you may want a term policy that lasts 20 years. If you are closer to paying off your mortgage or student loans, you can choose a shorter term. For instance, some individuals may consider a ₹1 crore term insurance plan to ensure substantial coverage during their working years.
Premium Costs
Premiums for term insurance are based on several factors, including age, health, smoking status, and the policy’s coverage amount. As a single woman, it’s wise to shop around and compare rates from multiple insurance providers to ensure you’re getting the best deal.
Riders and Add-ons
These are additional benefits that you can attach to your term insurance policy. They provide extra coverage or benefits beyond the standard death benefit of the policy. Riders are typically added at the time of purchasing the policy and may come at an additional cost.
Health Status and Medical History
If you are in good health, you can benefit from lower premium rates. Many term insurance policies require a medical exam to assess your risk level. However, there are no-exam policies available as well, though they typically come with higher premiums.
Special Considerations for Single Women
When choosing a term insurance policy, single women should keep the following in mind to ensure comprehensive coverage and flexibility:
Important Term Insurance Riders for Single Women
Understanding the riders that can be added to term insurance for single women is crucial. Essentially, these riders are extra benefits that can be added to the basic insurance and are designed to address certain issues or needs, among them are:
Critical Illness Rider
If the policyholder is identified as having one of the critical illnesses listed in the policy, Critical Illness Rider pays out a lump payment. It's especially helpful because it can assist with paying for medical costs, which can be a big worry, especially if you're the only provider.
Waiver of Premium Rider
Waiver of Premium Rider guarantees that the policy will continue to be in effect without the policyholder having to pay premiums if a catastrophic illness or disability causes them to lose their job.
Accidental Death Benefit Rider
Accidental Death Benefit Rider pays the nominee an extra sum in addition to the basic policy death benefit if the policyholder passes away in an accident. For individuals who are worried about the financial ramifications of an unintentional death, this is an essential addition.
Income Benefit Rider
In the event of the policyholder's death, Income Benefit Rider provides the nominee with a regular income for a predetermined amount of time. This can help ensure financial security even when they are not around, especially for single women who are their dependents' main or only providers.
Child Support Benefit Rider
Designed specifically for single moms, this rider guarantees that a lump sum or ongoing payments will be given for the child's schooling or other requirements in the case of the policyholder's untimely death.
Disability Rider
If an accident or disease renders the policyholder permanently incapacitated, this rider helps to alleviate financial strain by paying a lump payment or waiving future premiums.
Riders can be added to the plan at a small additional cost. They enhance the coverage and provide much-needed financial support during challenging times.
For instance, the accidental death and disablement rider ensures financial stability in the event of accidental death or disability. The critical illness rider offers a lump-sum payout if diagnosed with severe illnesses like cancer or heart disease. Lastly, the waiver of premium rider keeps the policy active even if premiums cannot be paid due to disability or illness. These riders offer tailored protection to meet unique needs.

Ashok Manwani
VP, Life Insurance Products
Eligibility Criteria for Term Insurance for Single Women
The eligibility criteria for term insurance for single women are generally similar to those for other individuals. Here are the common factors considered by most insurers:
Documents Required for Term Insurance for Single Women
The documents required for term insurance might vary across insurers. However, typically, the following documents are required:
Identity Proof
Age Proof
Address Proof
Income Proof
Photographs
Medical Reports
Steps to Buy Term Insurance for Single Women Online
Here are five simple and easy steps to help single women buy term insurance online:
Compare Policies
Compare the features, benefits, prices, and coverage of various term insurance policies online.
Calculate Coverage
Use an online term insurance calculator to calculate how much coverage you require.
Documentation Needs & Eligibility Requirements
Examine the documentation needs and eligibility requirements for the term insurance plan.
Fill Out the Online Application Form
Complete the online application with personal and health details.
Pay Premium and Access Policy
Pay the premium online using a simple payment option. After payment processing, policy materials and a confirmation will be sent to you.
How to Download Term Insurance Policy Document With Digit App?
Need a copy of your term life insurance policy document? You can download it easily through the Digit App by following these simple steps:

Login Your Account
Visit the Digit website or app and click on ‘Login’ at the top-right corner. Enter your registered mobile number and verify with OTP.
Visit ‘Active Policies’
Once logged in, navigate to the Active/My Policies section. Here, you can check the policy number, end date & start date.
Download the Policy
Done! You can save, share, print or email the policy for future reference anytime, anywhere.
Common Misconceptions About Term Insurance for Single Women
Myth 1: I don’t need insurance because I’m single and have no dependents.
Even if you don’t have dependents, term insurance can cover debts, such as student loans or a mortgage, ensuring they don’t become a burden on your family.Myth 2: Term insurance is too expensive.
Term insurance is often more affordable than people think. Premiums are generally lower when you are younger and healthier.Myth 3: My employer’s insurance is enough.
Employer-provided insurance is usually limited and may not be sufficient to cover all your needs. Additionally, it typically ends when you leave the job.Myth 4: I can buy insurance later when I need it.
It’s better to buy insurance when you are young and healthy to lock in lower premiums. Waiting can result in higher costs and potential denial due to health issues.Myth 5: I don’t need insurance because I have savings.
While savings are important, they might not be enough to cover unexpected expenses or long-term financial needs. Insurance provides a safety net that complements your savings.Myth 6: Term insurance is only for covering death.
Term insurance can also provide living benefits, such as critical illness coverage, which can help with medical expenses if you are diagnosed with a serious illness.Tax Benefits of Term Insurance for Single Women
Term insurance offers several tax benefits for single women, which can help them manage their finances more effectively. Here are key points to consider:
Income Tax Deduction on Premiums
Under Section 80C of the Income Tax Act, policyholders can claim a deduction for the premium paid on term insurance. The maximum deduction allowed is up to ₹1.5 lakh per annum. This benefit applies irrespective of the policyholder's gender or marital status, making it an attractive option for single women looking to save on taxes.
Tax-Free Death Benefit
The death benefit received by the nominee(s) of a term insurance policy is entirely tax-free under Section 10(10D) of the Income Tax Act. This ensures that the financial future of the dependents is secure without any tax liabilities on the received amount.
Tax Benefits on Riders
Many term insurance policies offer additional riders such as critical illness cover, accidental death benefit, etc. The premiums paid for these riders are also eligible for tax deductions under Section 80C or 80D, depending on the type of rider. This provides an added layer of financial protection while also offering tax-saving opportunities.
Considerations for High-Income Earners
For single women who are high-income earners, choosing a term insurance policy becomes even more beneficial. The tax savings can be significant, lowering the effective cost of insurance. This makes term insurance an efficient tool for financial planning and protection.
No Impact on Tax Benefits Due to Policy Assignment
In case the policyholder decides to assign the term insurance policy, the tax benefits on the premiums paid and the death benefit received remain unaffected. This offers flexibility in managing the policy without losing out on the tax advantages.
How to File a Claim with Digit?
Filing a Claim for your Digit Term Insurance can feel overwhelming during challenging times, but understanding the step-by-step process can help ensure ones receive the financial support one needs promptly and efficiently:
Inform Digit Immediately
Notify us about the occurrence of the claim event as soon as possible. You can do this by contacting via helpline at 1800-296-2626 or emailing lifeclaims@godigit.com.
Submit Required Documents
Provide necessary documents such as death certificate, policy document, valid ID proof of the nominee and claim form duly filled and signed.
Receive Claim Acknowledgment
After submitting the documents, you will receive an auto-generated ticket number for your claim.
Claim Settlement
Digit will verify the documents and assess the claim. Once the claim is approved, you will receive updates via SMS, email, or through the app, and the company will process the payout to the beneficiary's account.
Term insurance plans offer a balanced approach to financial freedom and peace of mind. It ensures your family’s financial stability after your demise, protects against future medical expenses, and aids in retirement planning.
By choosing a term plan that aligns with your budget and needs, you can fully enjoy your single life, pursue your career, and start new ventures with the assurance of affordable coverage.
FAQs about Term Insurance for Single Women in India
What is the ideal age to buy term insurance for single women?
Can I change my term insurance policy if I get married later?
How much coverage should a single woman typically have?
Are there any special discounts for single women buying term insurance?
Do single women without dependents need term insurance?
How does term insurance differ from whole life insurance for single women?
Can I name my parents or siblings as beneficiaries on my term insurance policy?
Will my term insurance premiums increase as I get older?
How do I determine the coverage amount of term insurance without dependents or a spouse?
Are there any specific riders or add-ons tailored to single women regarding term insurance policies?
How does term insurance fit into retirement planning for a single woman?
Is it advisable for single women to convert their term insurance to a permanent policy later in life?
What are the tax benefits available for single women purchasing term insurance under specific laws?
How should a single woman list beneficiaries on her term insurance policy when she has no children or spouse?
What should single women know about policy renewal or conversion if they anticipate future responsibilities, like adopting a child or supporting a relative?
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