Term insurance purchases by women in India have seen a significant increase, with an 80 per cent surge in the last two years, according to a report by Policybazaar.com. The upward trend shows a growing awareness among women regarding financial security and planning. Moreover, the data shows a significant 120 per cent increase in the purchase of high-cover plans, indicating that women are not only buying more insurance but also choosing policies with larger cover amounts.
The report highlights that working women, including both salaried and self-employed individuals, account for a majority (around 50-60 per cent) of the policy purchase. However, housewives have also made their mark, representing 40 per cent of the term insurance policies bought by women. This represents a growing realisation among women across all categories to ensure financial security within the household.
Adoption for term plans with a cover amount of 2 crore or more has almost doubled since 2022, the data shows.
Term Insurance For Homemakers
Traditionally, homemakers did not have access to financial security plans like term insurance. The introduction of specific term insurance for homemakers, three years ago, therefore, marks a significant step towards empowering them with financial protection.
These policies allow homemakers, who may not have a regular income stream to secure their families' financial future in case of unforeseen events. The data suggest that more housewives are now buying term insurance, wherein many of these plans come with riders such as critical illness, which can help manage medical expenses for diseases like cancer.
Says Rhishabh Garg, Head of Term Insurance at Policybazaar, “With the rising incidence of cancers specific to women, insurance providers have expanded their coverage in critical illness rider to include breast cancer, ovarian cancer, and cervical cancer. This rider ensures financial support even at the early stages of these cancers, starting from the initial diagnosis.”
He further adds that many insurers are now offering comprehensive health management services designed specifically for women. These include annual benefits up to Rs. 36,500, covering a wide range of services such as tele-OPD consultations and lab tests, including Diabetes, Thyroid, Lipid Profile, Calcium Serum, and Complete Blood Count tests.
The rising adoption of these policies by housewives reflects an increasing financial agency among women who were previously underserved by the insurance sector.
Metro Cities Lead The Way
The report reveals that women from metropolitan cities are at the forefront of this trend wherein Delhi (8-10 per cent), Hyderabad (6-7 per cent), and Bangalore (6-7 per cent), are leading in the volume of the term insurance purchases. Guntur, a smaller city, also made its way into the top five, highlighting the growing penetration of term insurance even in non-metro areas.
The Age Cohort
Women in their late 20s and early 30s, particularly those between 25-34 years of age, are the most active in purchasing term insurance. This trend has been seen among both working women as well as homemakers.
The average age of working women buying term insurance stands at 31-32 years which is slightly higher than that of housewives, who average around 30-31 years.
Age-wise split up: Working Women v/s Homemakers
| Age bracket | Working women | Homemakers |
| <25 years | 7% | 12-13% |
| 25-29 years | 26-28% | 26-28% |
| 30-34 years | 31-33% | 32-35% |
| 35-39 years | 18-20% | 17-18% |
| >=40 years | 15-17% | 8-9% |
However, the data reflects that around 12-13 per cent of homemakers are purchasing term insurance in the youngest age bracket (under 25 years). This indicates that women in their late 20s and early 30s are the most active segment in purchasing term insurance. This age group is likely entering or stabilizing in their careers and family life, leading to a heightened focus on financial planning and security.
