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What's Different If You Are A Female - Personal Finance and Women

If you have a mother, sister, wife or daughter, or are a woman, this article is a must read. Here we tell you how women have different financial needs and how there are special financial products that offer them advantages that are not available to men.

1. Why should a woman do her financial planning individually rather than as a couple or with her family?
2. What are some women-centric products available in the market?
3. Are women-centric products a marketing strategy, or they genuinely cater to specific needs of women?
4. Are there other financial benefits are available to women?

1. Why should a woman do her financial planning individually rather than as a couple or with her family?

   Women face different challenges to men. Whether in the workforce, within the family or in a marriage, women have different priorities, which must be addressed appropriately. One of these priorities relates to their financial matters. For the following reasons, women need to plan their finances individually.

   1. Higher Life Expectancy: Women typically live longer than men. Therefore, they need to be prepared for retired life if they were to outlive their spouse
   2. Change in Marital Status: Women need to be financially independent in the eventuality they go through a divorce or if their parents cannot support them
   3. Mental Block or Fear Against Finance: Women often tend to be more intimidated by financial matters than men. Smooth talking salespeople often exploit this. Therefore, it is important that women actively think about their own financial planning so that they can overcome their fears, as well as be savvy about making the right decisions

   Other factors that impact women for which they need to do careful planning are:

   • Financial Independence: Our society continues to be a male dominated one. It makes it all the more critical for women to become financially secure and independent so that they are less reliant on others
   • Care/Support for Parents: Women might need to take care of their parents for which their husbands might be reluctant to spend money
   • Job Transfers: Occasionally, a job transfer for the spouse might impact a woman's financial situation and career prospects. Accordingly, women need to be aware of how such moves impact their long term financial security and independence
   • Care for Children: In our society, the responsibility for day-to-day care for the children falls on women. This often requires that women need to take time-off from work, and as a result they might limit their career prospects and financial independence

   Given the above unique needs and challenges, women must plan individually from their parents or husbands. Such separate plans need to close them from participating in a joint plan. Top

2. What are some women-centric products available in the market?

   Some examples of women centric financial products available in Indian markets are:

   1. Special Life Insurance Plans: LIC Jeevan Bharti - 1, Bajaj Allianz Mahila Gain are some of the life insurance plans exclusively for women. Such plans offer additional benefits for women that are not available in other plans available in the market. These benefits include coverage of congenital disability benefit, pregnancy complications etc.
   2. Special Health Insurance Plans: Birla SunLife Critical Illness - Women Rider is an example of special rider exclusively for women.
   3. Bank Accounts with special benefits for women: Citibank's and ICICI's Women Account, UTI Bank's Smart Privilege Account are examples of special bank accounts for women. Through these accounts, women get the added advantage of special loan or deposit rates, facility of recurring deposits (with no TDS deduction), lower minimum balance, etc.
   4. Women Debit Cards: HDFC Women's Advantage Debit Card and ICICI Bank Women's Debit Card are few examples. Women can avail special benefits such as discount on locker fees; cash back facility, accidental insurance cover, free bill pay facility etc.
   5. Credit Cards for Women: Citibank's Women Credit Card, Standard Chartered Diva and HDFC Women's Gold credit card are few examples. Added benefits such as lower maintenance charges, cash back are available
   6. Loan Schemes for Women: Various PSU banks are offer special loan rates for women. For example, PNB and UCO bank offer lower (0.25% less) interest rate on home loans to women Top

3. Are women-centric products a marketing strategy, or they genuinely cater to specific needs of women?

   Women-centric financial products aren't just a marketing gimmick. These products genuinely carry added benefits for women such as lower loan rates, special debit and credit cards, specific health and life insurance plans etc. The financial organizations have identified the special needs of women and are accordingly catering to these needs by way of such specialized products.

   Given the choice, it might be preferable for women to choose a product tailored for women over some general product available in the market. Always ask if there are special schemes available, and compare the benefits of the women-centric products to the other products available in the market. Additionally, make sure that you are not being charged a higher fee or commission for choosing a product tailored for women. Top

4. Are there other financial benefits are available to women?

   Some other financial benefits exclusively available to women are:

   • Tax breaks: For women, income up to Rs 1,80,000 is exempt from income tax in India as against the limit of Rs 1,50,000 for men
   • Lower Life Insurance Premium: Since the life expectancy of women in India is higher, women are required to pay lower life insurance premium when compared to the premium paid by a man of the same age
   • Lower Loan Rates: Women get an added advantage of lower home loan rates, personal loan rates and entrepreneurship loan rates. This facility is mainly provided by the PSU Banks in India such as Punjab National Bank and UCO Bank Top

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Comments

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kiran  said : 22/10/2010	nice article . Thanks for sharing a word of wisdom through this article. Every women must read it .
N U Maheswari said : 07/04/2009	Delited to see this type of information. Nie initiative