Women And Term Plans: A Growing Trend

Women are taking charge of their finances, with decisions that reflect their growing independence and long-term financial planning. Be it term insurance, health coverage or investing, the choices they are making highlight a shift towards financial empowerment and a secured future. Recent data by Policybazaar.com shows that around one-third of women’s investments are going towards retirement planning and securing their children’s future. 

Women & Term Plans: High Coverage and Growing Uptake

The idea of life insurance is typically associated with the primary breadwinners of the family, which, traditionally is perceived for men. However now, it looks like the women are taking the lead. The ratio of women purchasing term insurance has risen by 18 per cent this financial year, shows the Policybazaar’s booking data.

The change is not happening in isolation, it is visible across various categories of women - from salaried to homemakers. The report highlights that;

• Salaried Women (at 49 per cent) are the largest and fastest-growing group who are driving the uptake of term plans. This reflects a shift towards independent financial planning, especially among professionals with corporate-backed insurance.

• Homemakers (at 39 per cent) are also a rapidly growing segment who often purchase term plans to secure their children's financial future.

• Self-employed Women (at 12 per cent) represent entrepreneurs and freelancers who are also recognising the need for financial protection without employer-backed benefits.

Higher Coverage: It’s not just the uptake of term plans which is seeing growth, women are also opting for higher coverage. Almost 44 per cent of female policyholders are choosing term insurance of Rs 1 crore or more. This is how much coverage women are opting for:

• 6 per cent women opt for coverage less than Rs 50 lakh

• 49 per cent are opting for coverage between Rs 50 lakh to Rs 99 lakh (this is the most common choice which shows they are choosing affordability and sufficient protection)

• 34 per cent of women are opting for covers between Rs 1 crore to Rs 1.99 crore.

• Merely 10 per cent of females are going for covers of Rs 2 crore or above. These are primarily chosen by high-income professionals and business owners.

Women in metro cities such as Delhi, Bangalore, Mumbai, Pune, Chennai, and Hyderabad are leading the term insurance adoption, driven by higher financial literacy and greater disposable income.

Says Varun Agarwal, Head of Term Insurance at Policybazaar, “Term insurance is a critical component of financial planning. Whether a woman is the primary breadwinner or a homemaker, her contribution to the household is invaluable. A term plan ensures financial stability for dependents in case of an unfortunate event.”

Speaking on the growing uptake of term plans by homemakers, Agarwal states, “Even though homemakers don’t contribute directly to the family’s income, their contributions are significant and their absence can cause major distress to their family. The cost of hiring help for childcare, household chores, and caregiving can be substantial. We have to understand that buying in a term plan is not just about income replacement, it’s also about preserving a family's financial stability and future, ensuring that their well-being remains uncompromised even in the most challenging times.”

Women and Health Insurance

Health insurance is no longer an afterthought for women, the data shows that their role as policy proposers has risen from 15 per cent to 22 per cent in two years.

Women in their 40s and beyond are proactively opting for high-value coverage of Rs 1 crore, where many are choosing super top-ups to make health insurance more affordable. Around 70-75 per cent are now opting for Rs 10 lakh plus the sum insured.

While Delhi, Mumbai, Bangalore, Hyderabad, and Chennai lead in adoption, health insurance uptake is increasing rapidly in smaller cities as well;

• 46% of purchases are from Tier 1 cities

• 34% from Tier 2 cities

• 20% from Tier 3 cities

Women’s health insurance preferences shift as they age. This is how women from different age groups tailor their plans;

• 20s-30s: Women in this age group opt for maternity benefits and wellness programs, focusing on reproductive health and preventive care.

• 40s-50s: Prefer a coverage of Rs 25 lakh or more sum insured. This is primarily because of the rising medical costs and hospitalisation expenses.

• Above 50: Seek comprehensive coverage with critical illness riders. This is a reflection of women prioritising chronic disease management and shorter waiting periods for pre-existing conditions.

Women & Investment Trends

The data further shows that women’s allocation to Unit Linked Insurance Plans (ULIPs) has steadily increased, now accounting for 18 per cent of total investments in ULIPs as of February 2025. Moreover, nearly one-third of their investments are directed towards retirement planning or securing their children’s future, demonstrating a strong focus on financial independence in later years and building a safety net for dependents.

Looking at the age-wise trend of investment, women aged between 31 and 45 account for over 50 of investments in ULIPs and other market-linked insurance products. Additionally, nearly one-third of women investors are 30 or younger.

While 40 per cent of total investment by women is coming from Tier 1 cities (compared to 32 per cent for men), investment participation in Tier 1 and Tier 3 cities is still lower, the report notes.

This Women’s Day, the numbers speak for themselves. They are no longer just participants in financial decision-making but are leading their finances as leaders. And as their financial independence grows, so does their ability to shape a more secure and empowered future for themselves and their families.