Life Or Term Insurance: What Do Women Prefer To Secure Their Child's Future

Women, particularly mothers, are now thinking differently about financial protection. When it comes to term insurance, women are not taking it up just to cover life's risk anymore; it's also about making sure their children's future is secure.

A new survey by Bajaj Allianz Life Insurance reveals that more and more women see term insurance as a way to do exactly that. The Women Term Survey 2025, which covered over 1,000 salaried and self-employed women across Indian cities, shows that term insurance is not just a fallback plan, it is increasingly becoming a core part of how women are planning for their families' futures.

A large chunk of respondents, 73 per cent, said they worry about how their child's education would be funded in their absence. Another 61 per cent said they are anxious about how their child would cope financially if something unexpected happened. These are not vague worries but concrete fears that are driving these women's real financial decisions.

Term Insurance: Preferred Financial Tool

And term insurance, surprisingly, has emerged as the most preferred tool.

Nearly half the women surveyed, 46 per cent, picked it as their first choice for securing their child's financial future. But they are not looking for just any term plan.

What stood out in this survey was the value they placed on specific features. For instance, around 93 per cent of mothers said that the 'Child Income Security' feature made a term plan more appealing for them. This is not about generic coverage, it is also about a plan that directly responds to their biggest "what-ifs".

Health Concerns and Financial Protection

Health risks also weigh heavily in their financial protection fears.

Over half the women surveyed (53 per cent) are concerned that a major medical expense could wipe out their family's savings. It makes sense then that 87 per cent of them said critical illness coverage was something they actively look for in a term plan.

Similarly, built-in health management services such as preventive care and consultations, are now seen as essential by more than half the respondents.

The survey also points to a growing desire for insurance that evolves with life. About 51 per cent said they would want flexibility built into the policy, something that lets them adjust their coverage when circumstances change, like after having another child or a major shift in income.

And 33 per cent of mothers said they see financial support for a child's education as a must-have feature.

At the same time, there is a sense of frustration with how some term plans are currently designed:

• Many women feel there is little room to tailor the coverage to their changing needs.

• Some flagged the lack of maturity benefits or the complicated claims process as drawbacks.

What is on their wishlist? Affordable premiums, better critical illness add-ons, and simpler policy features.

This survey confirms what many may have sensed for a while: women are no longer just participants in financial planning anymore they are leading it and doing so with clear and defined priorities. Insurance, especially term insurance, is being redefined by this shift, which is no longer a one-size-fits-all product.