4 Financial Products that every Women must have today

Financial products every woman must have today

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Until a few decades ago, women used to manage the household efficiently, thanks to their discipline and resourcefulness. The woman of today, however, is not only continuing the tradition but going one step ahead. Along with running the family and household, she has also mastered the art of advancing in her career, while juggling several responsibilities. 

When it comes to finances, the modern Indian woman has become increasingly independent. Her involvement in the family’s financial decision-making has grown considerably in the past two decades. So, in this era of growing consumerism, it is not surprising to see the market flooded with a variety of financial products targeted at women.

Why women-centric products?

Educate a woman, and her whole family is educated, or so they say. Similarly, empowering a woman to manage her finances strengthens her family’s financial situation. Goals such as buying a home, investing in land/property, or children’s higher education become possible when there’s financial assistance. Besides, financial planning is critical for a woman to meet her professional and personal aspirations without having to depend on anybody. Familiarity with the basics of personal finance can also help women avoid costly mistakes. For example, financial literacy will ensure that credit cards are used judiciously.

So, what are the products designed especially for women?

• Insurance (life, health, and others)

Insurance providers offer plans designed to cater to the concerns and ailments of women, such as complications during pregnancy, critical illnesses such as cervical and breast cancer, and so on. Women on average live longer than men, so they can pay a lower premium even if the total amount remains the same. Women can also get discounts until 40 years of age, avail up to 10% discount on the premium, and pay fewer premiums than men of the same age. The economic value of the homemaker is huge, which is why there are specific life insurance plans just for them.

The limit on these plans can be raised up to a crore, contingent on the insurer. Many insurance providers have plans that cover other circumstances such as spousal death and disability. With an array of insurance plans available in the market, one that stands out is HDFC Life’s Smart Woman Plan. This insurance plan covers several women-specific issues, such as pregnancy complications and women-specific cancers. Additionally, it also doubles up as an investment plan, offering policyholders a double benefit.

• Loans (personal, home, and more)

When a woman applies for a car or housing loan, even as a co-applicant, banks tend to offer a lower rate of interest. The difference can be around 0.05%. While one might feel this doesn’t look like much, a substantial difference can be seen on higher loan amounts since these have a more extended tenure. A joint home loan with a female spouse helps save on income tax and reaps the benefits on the principal (Sec 80C) and interest (Sec 24). Lenders also offer a lower rate of interest for women on loans for education, marriage, or buying land. There are also exclusive gold loan schemes for women. All these have specific standard benefits such as low-interest rates, cheaper plans, and exclusive policies for women entrepreneurs.

* Terms & conditions apply. Loan disbursal at sole discretion of HDFC Bank Ltd.

• Savings bank accounts

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Today, banks provide special savings accounts to encourage women to save for financial stability and cater to other needs such shopping and travelling. These customised savings bank accounts offer cashback and rewards, and other benefits such as lower minimum account balance and health and life insurance benefits when opening an account.

The Women’s Savings Account from HDFC Bank includes a range of features such as EasyShop debit card, cashback offers, higher daily shopping limit, and higher cash withdrawal limit. Women account holders are also offered exclusive benefits such as insurance cover and preferential pricing on online trading accounts.

• Debit and credit cards

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Depending on income, there are debit and credit cards for working women and add-on cards for non-earning women. Customers can reap benefits such as unlimited cash withdrawals and additional discounts and rewards. For instance, HDFC Bank’sEasyShop Woman’s Advantage debit card offers cashback of one rupee on each purchase worth Rs. 200 for an entire year. Cardholders also get a 50% discount on locker facilities for the year and an insurance cover of up to Rs 5 lakh.

There are also women-specific credit cards available, such as HDFC Bank Solitaire Premium Credit card, which lets women enjoy shopping vouchers of up to Rs 2000 per year, cashback of up to Rs 2000, multiple reward points on grocery shopping and dining, and zero lost card liability.

You can apply for a HDFC Bank Credit Card and HDFC Bank Debit Card now!

Conclusion

It is essential that every woman starts investing in her future by using these financial instruments. Planning for your retirement is a smart move even if you’re at the beginning of your career. Now that you have a better idea of what products and schemes are available go ahead and make your life a little easier. Remember that as a woman you must ensure the financial stability of your family – but not at the cost of your financial security.