80% increase in term insurance purchases by women in 2 years: Report

The data reveals:

An 80% increase in the number of women purchasing term plans over the past two years.

A 120% rise in women opting for high-value coverage.

Working women vs housewives

Both working women and housewives made notable strides in securing their financial futures. Working women, including salaried and self-employed, led the way, accounting for 55-60% of term insurance purchases. Housewives, on the other hand, contributed around 40%, demonstrating that financial planning was no longer just for those earning an income.

While working women dominated the term insurance market, housewives were not far behind. Since term insurance for homemakers was introduced only three years ago, the growing adoption of such policies highlighted increasing awareness and involvement in financial security.

According to the data:

* Working women opted for term plans with cover amounts of Rs 2 crore or more, and this trend nearly doubled since 2022.

* Housewives represented a considerable share of the market

Where did most purchases happen?

The surge in term insurance adoption wasn’t limited to the major cities. While metropolitan areas such as Delhi (8-10%), Hyderabad (6-7%), and Bangalore (6-7%) led the pack, smaller cities like Guntur (4-5%) also showed strong growth. Guntur’s presence in the top five highlighted the increasing penetration of term insurance among women in less prominent regions.

What was the age breakdown?

Women in their late 20s and early 30s were the most active in purchasing term insurance. The average age for working women buying term insurance was around 31-32 years, slightly lower than that of housewives, who averaged around 30-31 years.

The age group breakdown was as follows:

* Women aged 25-34 made up the largest portion of buyers for both working women and housewives.

* Housewives showed a slightly higher percentage of buyers in the under-25 bracket compared to working women.

This trend suggested that many women focused on financial planning as they settled into their careers and family life.

Riders part of the packages

Many women, according to the report, added critical illness riders to their term insurance plans.

“We recommend that along with an adequate cover amount, women go for riders like critical illness,” Garg said. He explained that many insurers expand their coverage to include cancers specific to women, such as breast, ovarian, and cervical cancer.

These critical illness riders ensure financial support from the early stages of such diseases, starting with the initial diagnosis. Insurers also offer comprehensive health management services tailored specifically for women, covering annual benefits of up to Rs 36,500. These services include tele-OPD consultations and lab tests such as diabetes, thyroid, lipid profile, and more.

According to the World Economic Forum (WEF), “Women often handle unpaid caregiving and housework, leading to missed promotions and part-time work. Consequently, women may have less capacity to generate income through employment and wealth creation through investing. While over 80% of women are comfortable leading short-term financial planning activities for their families, only 23% are comfortable leading long-term financial planning such as investing and insurance. This lack of confidence affects wealth creation and impedes engagement in investment activities”.

Hence, the upward trend in women purchasing term insurance, particularly high-cover plans, is encouraging and reflects a growing sense of financial responsibility and awareness among women in India.

First Published: Sep 12 2024 | 5:40 PM IST