By buld_online 
I’m 34 and a single mother. While I invest in mutual funds for retirement and my child’s education, what should be my next priority—should term insurance take top spot in my financial plan?
Advice by Amit Jaiswal, Chief BALIC Direct Officer, Bajaj Allianz Life Insurance
Term insurance has long been viewed as a safety net for the family’s main breadwinner—typically assumed to be male. But as more Indian women step into the role of primary or equal earners, the need for robust life cover has become just as critical for them. For single mothers in particular, term insurance is no longer a financial add-on—it’s a non-negotiable tool of protection that safeguards their children and dependents when they’re no longer around to do so themselves.
Picture this: a single mother with a five-year-old child, ageing parents, and a home loan. If something were to happen to her, who would step in to cover the EMIs, tuition fees, or hospital bills? This is where term insurance plays a vital role, offering a strong, affordable financial cushion. It ensures her child’s goals—be it a foreign education or a startup dream—don’t collapse under the weight of lost income. The payout from a term plan can be used for daily expenses, debt repayment, and maintaining the family’s standard of living.
For many single mothers, the entire financial future of their family—education, healthcare, rent, even food—depends on their planning. With no secondary income or fallback option, one unexpected life event can derail everything. That’s what makes term insurance not just a smart choice but a critical pillar of financial security.
Term plans: low-cost protection with high stakes
Term plans provide significant coverage at relatively low premiums, making them ideal for single mothers managing monthly expenses on their own. This affordability means long-term security doesn’t have to come at the expense of day-to-day needs.
And the financial risks they carry are real. From school fees and house rent to elder care and medical costs, single mothers shoulder every burden. In the event of their untimely passing, the financial shock to dependents would be immediate and severe.
Beyond basic cover: Customising for real-life needs
Today’s term insurance products can be tailored well beyond just death benefits. Single mothers should consider plans that include additional services and riders that meet their unique needs:
Child care benefits: Structured payouts that cover education and upbringing in the mother’s absence.
Health management services: Second medical opinions, digital health access, and wellness consultations to help the policyholder stay healthy.
Critical illness riders for women: Coverage for conditions like breast cancer, cervical cancer, or lupus, which can derail income and family finances without support.
These riders transform a simple term plan into a women-centric financial protection strategy that addresses life’s practical challenges.
Timing matters: When and how much to insure for
The best time to buy term insurance is as early as possible. Younger policyholders pay lower premiums and lock in protection for longer durations. Waiting too long increases costs, especially as age-related health concerns emerge.
How much cover is enough? A general rule is 10 to 15 times one’s annual income. But this should be reviewed regularly to account for rising expenses and future goals such as children’s education, outstanding debts, or parental care.
It’s not just a policy—it’s a plan with a purpose
Term insurance isn’t about fearing the worst—it’s about planning responsibly. For single mothers, it is not a luxury or an afterthought—it is a commitment. A commitment to protect their children’s futures, honour their responsibilities, and ensure their aspirations don’t die with them.
In today’s uncertain world, a dedicated term plan is no longer optional—it’s an essential financial shield that every single mother must consider.
(Views expressed by the expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)