Increase in Term Insurance Uptake Among Women in India, Reports Policybazaar
In an insightful report released by Policybazaar, the landscape of term insurance among women in India has undergone a significant transformation, with female buyers accounting for nearly half of all purchasers in the current fiscal year. The findings reveal a marked increase in the uptake of term insurance, rising to 18% in this fiscal period.
Demographics of Women Buyers
The data highlights that salaried women constitute a substantial 49% of term insurance buyers. Following them are homemakers, who represent 39% of the market, and self-employed women, making up the remaining 12%. Particularly notable is the activity among women aged 31 to 40, who are the most engaged demographic in this segment, accounting for 48% of all term insurance purchases.
Preferences for Coverage and Payment
The trend towards higher coverage is evident from the statistics: 44% of women are opting for policies with a coverage amount of ₹1 crore or more, reflecting a growing awareness of the need for substantial financial protection. Furthermore, nearly 90% of women prefer paying premiums monthly, citing better management of their budgets as the primary reason for this preference.
Regional Adoption Rates and Health Insurance Trends
In terms of geographical distribution, metro cities like Delhi, Bangalore, and Mumbai are leading in term insurance adoption rates. The report also indicates a parallel increase in health insurance participation among women, which has risen significantly from 15% in fiscal year 2023 to 22% in fiscal year 2025. A notable proportion, about 70% to 75% of women, now choose a sum insured of ₹10 lakh or more, driven by increasing medical costs.
Women aged 40 and older are showing a distinct preference for ₹1 crore coverage, often utilizing supplemental super top-ups to keep their insurance affordable. While health insurance uptake remains strongest in metropolitan areas, there is encouraging growth in Tier 1 and Tier 2 cities.
Investment-Linked Insurance Products
The report further delves into the engagement of women with investment-linked insurance products. Approximately 18% of investments in Unit Linked Insurance Plans (ULIPs) are attributed to female investors. Notably, over half of these investments come from middle-aged women aged 31 to 45, while nearly one-third originates from women aged 30 or younger. Tier 1 cities dominate in this area, with more than 40% of total investments sourced from these urban locations.
Conclusion
The trends highlighted in Policybazaar’s report underscore the evolving role of women as active participants in the insurance and investment markets in India. With increasing financial literacy and a proactive approach to securing their futures, women are shaping a significant part of the country’s insurance landscape.
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