Rise in Women Policyholders: The number of women purchasing term insurance plans in India has witnessed a remarkable 80% surge over the past two years, as PolicyBazaar’s latest data reported. This significant increase highlights the growing financial awareness and inclusion among women in India.
Notably, more women are now opting for high-coverage policies. The data shows an increasing preference for term insurance plans with coverage exceeding ₹2 crore. This trend indicates a shift in mindset as women prioritize higher financial protection for themselves and their families.
The emergence of Smaller Cities as Key Markets Interestingly, smaller cities are emerging as prominent hubs for women purchasing term insurance. Andhra Pradesh’s Guntur has secured a place among the top five cities where women have purchased the most term insurance policies. Other smaller cities like Bangalkote, Karur, Goalpara, Lucknow, and Gorakhpur have also seen an increase of 1% to 3% in women buyers.
Rising Demand for High-Cover Term Insurance The demand for high-value term insurance plans offering coverage of up to ₹2 crore has grown significantly. According to PolicyBazaar’s data, the number of women opting for such high-cover plans has increased by 120% since 2022. This growth reflects a shift in purchasing behavior, with more women seeking comprehensive financial security.
Homemakers Leading the Way Term insurance plans tailored for homemakers introduced only a few years ago, have gained notable traction. Over the past two years, around 40% of the total term insurance policies purchased by women were bought by homemakers. Most of these buyers are in the 20-to-30-year-old age bracket. This trend underscores the growing recognition of homemakers’ financial contributions and their need for insurance coverage.
According to Rishabh Garg, Head of Term Insurance at PolicyBazaar, “It is encouraging to see women taking charge of their financial planning by purchasing term insurance policies. We also recommend that, along with an adequate coverage amount, women go for riders like critical illness. With the rising incidence of cancers specific to women, insurance providers have expanded their coverage in critical illness riders to include breast cancer, ovarian cancer, and cervical cancer.”
Metro Cities Leading the Charge Metro cities such as Delhi, Mumbai, and Bangalore continue to lead in the number of women buying term insurance. According to the data, 8% to 10% of women buyers were from Delhi, while 6% to 7% of buyers hailed from Hyderabad and Bangalore. Mumbai also ranks among the top four cities, with a significant volume of women purchasing term insurance.
Policy Features Women Should Consider Industry experts recommend that women consider adding riders to their term insurance policies to enhance coverage. Popular riders include the Critical Illness Rider, which provides additional coverage for breast, ovarian, and cervical cancer conditions. These riders offer financial support in case of a serious illness, ensuring that policyholders’ loved ones remain financially secure.
Additionally, experts advise women to ensure they have adequate coverage. For homemakers, the policy should be sufficient to protect the family’s financial well-being in the policyholder’s absence. Opting for high-cover policies, as seen in the growing demand for plans with ₹2 crore coverage, ensures sufficient support for dependents.
Key Takeaways
- The number of women purchasing term insurance in India has surged 80% over the last two years.
- Women’s demand for high-value term insurance plans (above ₹2 crore) has increased by 120%.
- Homemakers account for 40% of term insurance policy purchases by women, and most buyers are aged 20 to 30.
- Smaller cities like Guntur, Bangalkote, and Karur are witnessing a steady rise in women buying term insurance.
- Metro cities such as Delhi, Mumbai, and Bangalore dominate the number of term insurance purchases by women.
This rise in women’s participation in term insurance signifies a positive shift toward financial independence and security. As awareness of financial planning grows, women across India make informed decisions to safeguard their future and families.