It’s not uncommon to see female underrepresentation across sectors in India, including the already underpenetrated insurance sector. Right from nurturers to breadwinners, women not only play diverse roles with ease, but also constitute half of the country’s total population. Despite this, they tend to overlook their own needs and the importance of insuring themselves adequately. Recognising their invaluable contribution to the house – tangible or not – there’s a growing need for women to assume better control over their financial decisions. The stepping stone to achieving this financial freedom is to invest in a robust term insurance policy.
Fortunately, the insurance industry has tapped into this need gap and is constantly developing solutions tailored to women’s needs. If we look at the traditional context, both working women and homemakers often relied on their spouses to make financial decisions for them. That outlook, however, is increasingly undergoing a shift, and this is reflected through the rapid product innovation in the industry aimed at serving this segment. Our data suggests that the term insurance ownership grew by 12% in the first quarter of FY’24. Not just that, more women are taking charge of buying term insurance for themselves, instead of depending on male members of the family.
Eliminating dependency for homemakers
Traditionally, homemakers relied on their spouse’s coverage, leaving them underinsured and financially vulnerable. However, with the advent of modern term plans designed specifically for homemakers, this dependency has been eliminated. These plans offer coverage of up to Rs. 1 crore with flexible eligibility criteria, empowering homemakers to secure the financial futures of their dependents. These plans are available to homemakers who are 12th pass and above, and have an annual household income of Rs 5 lakh.
High coverage with affordability
Affordable insurance plans tailored for women encourage higher adoption rates, helping families maintain their lifestyle, manage financial obligations, and pursue long-term goals such as higher education. The good news is that women benefit from lower term insurance premiums, up to 30% cheaper, owing to their longer life expectancy and lower mortality rates. This statistical advantage stems from healthier lifestyles, genetic factors, and healthcare utilization patterns, resulting in tangible financial benefits for women opting for term insurance.
By understanding mortality and morbidity rates, women can make informed decisions about their insurance coverage, ensuring that they receive adequate protection at an affordable price. This cost-effectiveness ensures that women can access high coverage levels without straining their budgets, providing them with peace of mind and financial security.
The foundation for financial independence
The availability of tailored term insurance products has a significant impact on women’s financial independence. By securing adequate coverage, women can protect their families from financial hardships in the event of unforeseen circumstances such as illness, disability, or death. This financial security allows women to pursue their goals and aspirations with confidence, whether it’s starting a business, pursuing further education, or investing in their children’s future. Moreover, by taking control of their insurance decisions, women can assert their autonomy and agency in financial matters, furthering their journey towards independence and empowerment.
To bridge the existing gap in insurance adoption among women, a multi-faceted approach is needed. This includes raising awareness about the importance of insurance, developing products that cater to women’s unique needs and preferences, and addressing barriers to access and affordability. By working together, insurers, regulators, and stakeholders can further create a more inclusive and equitable insurance ecosystem that empowers women to protect themselves and their families effectively.
Moreover, by promoting financial literacy and education, women can develop the knowledge and skills they need to navigate the complex world of insurance confidently. Ultimately, by empowering women through tailored term insurance, we can create a more resilient and prosperous society for all.
