It would be an understatement to say that when it comes to financial independence, the deck has traditionally been stacked against women, for a long, long time. But the good news is, now the times are changing. While the struggle for true equality is still on, and as a society we have miles to go, it’s also true that today we have more opportunities for women to take control of their financial security than ever before.
We’re talking specifically about women in this piece here because of two reasons. First, compared to men, a lot of women in a country like India have slightly different financial goals - such as financial independence (traditionally women’s finances have often been tied to that of their partners). Second, there’s lower financial literacy among women when compared to men, because of stereotypical gender roles in most households. But despite these reasons, the positive here is that now more women are trying to take control of their future, whether we’re talking about personal wealth creation or career paths.
Traditionally women have been, for lack of a better word, over cautious when it comes to investments, and seeing how the market usually works, no one can blame them. It’s either that, or in general investing their savings is sort of low on the priority list for many women. That is why financial literacy targeted at women is more important than ever.
Due to these reasons, investing in both a life insurance plan and wealth-generating funds is often seen as “too time consuming”. Which is why we think a Unit Linked Insurance Plan (ULIP) is one of the best investment options for women, especially those who have certain financial goals in mind. Goals such as buying their own property or starting their own venture one day, and that too without leaning on others. ULIP taxation benefits under Section 80C and Section 10(10D) of the Income Tax Act, which proposed that income invested, interest earned, and the maturity amount are exempt from taxes. This makes ULIPs like HDFC Life’s Click 2 Wealth more attractive for those looking for affordable investment choices.
Here are other important reasons why we think women should seriously consider adding ULIPs to their investment portfolio, and that too sooner rather than later.
1. It encourages savings
Women have to face some specific challenges in their financial journey. Most get paid slightly lesser salaries due to the existing wage gap. This needs to go, but the truth is it exists. Most women also need more breaks in their career due to gender roles such as domestic responsibilities and maternity breaks. As a ULIP has a lock in period, it encourages women to keep saving a chunk of their income.
2. Helps build long-term corpus
Women usually have a longer life-span than men, and while that might sound like a positive, it also means they need to stretch their savings for longer. This needs a long-term corpus, which ULIPs provide.
3. Helps meet long-term financial goals
In today’s age when women are taking charge by running their own ventures, they also have the need for lump sum amounts that help them fund their dreams without leaning on others. Whether it’s seed capital or down payments for huge purchases, ULIPs can come in handy in either scenario.
4. Provides financial wellbeing and security
The safety net ULIPs provide through the insurance coverage in case of an unfortunate event is unparalleled. Knowing that such a net exists, is crucial to one’s peace of mind, especially if they’re a woman.
Now that you know why ULIPs are one of the best investment options for women, you might want to read up more about HDFC Life’s Click 2 Wealth. It comes packed with unique features such as being able to choose from 11 funds, unlimited free switching options and Special Addition of 1% of annualized premium for the first 5 years. When you choose a plan like this one, you’re not only helping create wealth to secure your personal goals, but also ensuring a safety net for those who look up to you for the woman you are.
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