Do You Know?

According to the recent report shared by Policybazaar Insurance Broker Private Limited, the number of women purchasing term insurance plans increased to 80%. This rise indicates the maximum demand for term insurance and financial inclusion among women.

In this blog, we explore why term insurance is becoming a must-have for women, the cities leading this change, and how you can make a smart, secure choice for yourself or the women in your life.

  • Key Statistics
  • What is Term Insurance?
  • Key Benefits of Term Insurance for Women in India
  • Who should buy Term Insurance for Women in India?
  • Key factors to consider when buying term insurance for women

Key Statistics- Women Purchasing Term Plans in India

  • Over the past two years, most women purchasing term insurance plans have been from metro cities, with Delhi, Mumbai, and Bangalore leading the way.
  • Data shows that 8% to 10% of these women buyers were from Delhi, while 6% to 7% hailed from Hyderabad and Bangalore. Mumbai also ranked among the top four cities with the highest number of term insurance purchases by women.
  • The PB data also shares that 40 percent of policies purchased in the last two years were purchased by housewives.
  • Most buyers belong to the 20–30 age group.
  • Smaller cities are witnessing a notable rise in term insurance purchases by women. Guntur, in Andhra Pradesh, secured the fifth spot, accounting for nearly 4% to 5% of the total women buyers.

What is Term Insurance?

Term Insurance is a type of life insurance that provides coverage for a specific period or "term"—such as 10, 20, or 30 years. If the policyholder passes away during this term, the insurance company pays a lump sum amount (called the death benefit) to the nominee or beneficiary.

Key Benefits of Term Insurance for Women

  • Financial Protection
  • Lower Premiums
  • Flexibility and Customization
  • Peace of Mind
  • Critical Illness Coverage
  • Maternity Benefits
  • Tax Benefits

Read here in detail-  Importance of Term Insurance for Women

Who Should Buy Term Insurance for Women?

  • Working Women: To secure the future of dependent parents or children.
  • Self-Employed Women: To protect families from business or home loan burdens.
  • Homemakers: To support family stability despite not having a direct income.
  • Single Mothers: To ensure children’s dreams and education are not compromised.

Key Factors to Consider When Buying a Term Insurance Plan for Women

Coverage Amount

Choose a sum assured based on future expenses, outstanding loans, and income replacement. It should be enough to maintain your family's current lifestyle.

Policy Term

Select a term that covers you until your major financial responsibilities—like a home loan or children's education—are fulfilled, or until your dependents become self-reliant.

Riders & Add-ons

Enhance your policy with relevant riders like critical illness, accidental death, or waiver of premium to ensure wider protection.

Claim Settlement Ratio

Check the insurer’s claim settlement ratio. A higher percentage indicates a trustworthy provider with a smooth claim process.

Research & Review

Compare insurers and read customer reviews.

Also Read: What is MWP Act in Term Insurance?

Bottom Line

Term insurance is a powerful way for women in India to secure their family’s financial future. It offers peace of mind, financial security, and the flexibility to meet personal needs. Choosing the right plan ensures your loved ones are protected from life’s uncertainties and have the support to pursue their dreams. Evaluate your needs, compare options, and make an informed choice.

PBPartners,a brand of Policybazaar Insurance Broker Private Limited and a leading Insurtech platform in India, is registered with over 3 lakh insurance agent partners to help and guide you in choosing the best term insurance plan tailored to your life goals.

Investing in term insurance is a smart step toward financial empowerment. For personalized guidance, connect with a PBPartners’ insurance agent today!

FAQs

What is the typical age group of women purchasing term insurance?

The majority of buyers are women aged between 25-34 years, reflecting a focus on financial planning during early career and family life stages.

Why is there an emphasis on critical illness riders for women?

With the rising incidence of women-specific cancers such as breast, ovarian, and cervical cancer, insurance providers recommend adding critical illness riders to term plans for comprehensive coverage.

What is Term Insurance?

Term insurance is a life insurance policy that provides financial protection to your family for a specific period. If the policyholder passes away during the term, the nominee receives a lump sum amount (sum assured).

Can I add riders to my term plan?

Yes! You can enhance your plan with riders like critical illness cover, accidental death benefit, waiver of premium, etc.