The uptake of term insurance among women in India has increased to 18% in the current fiscal year, according to a report from Policybazaar. Salaried women represent nearly half of the policyholders, accounting for 49% of the total buyers. Homemakers follow closely with 39%, while self-employed women make up the remaining 12%.
The demographic most actively purchasing term insurance is women aged 31 to 40, who account for 48% of all term insurance buyers. Additionally, the trend toward higher coverage is notable, with 44% opting for policies worth ₹1 crore or more.
A significant preference for monthly premium payments has emerged, with nearly 90% of women opting for this payment structure to better manage their budgets. Adoption rates are highest in metropolitan areas such as Delhi, Bangalore, and Mumbai.
Health Insurance Uptake and Investment in ULIPs Also Rise
Women’s participation in health insurance has seen a marked increase, rising from 15% in fiscal year 2023 (FY 2023) to 22% in FY 2025. In response to rising medical expenses, approximately 70% to 75% of women are now choosing health policies with coverage of ₹10 lakh or more. Women over the age of 40 are particularly inclined toward ₹1 crore coverage, often opting for super top-ups to maintain affordability.
Metro cities continue to lead in health insurance adoption, though Tier 1 and Tier 2 cities are showing signs of increased participation.
In addition, investment-linked insurance products, including Unit Linked Insurance Plans (ULIPs), have seen growing engagement from women. Around 18% of all investments in ULIPs are attributed to female investors, with middle-aged women (31 to 45) representing more than half of these investments. Nearly one-third of these investors are aged 30 or younger. Tier 1 cities remain dominant in this sector, accounting for over 40% of the total investments in ULIPs.
This shift reflects a growing awareness among women about securing their financial futures through insurance and investment products, highlighting a shift in both the financial landscape and women’s engagement with long-term planning.
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