India’s Women Take Charge: 80% Surge in Term Life Covers, Many Opting for ₹2 Crore Protection

In the past two years, India has witnessed a remarkable increase in how women are handling their own financial decisions. According to recent reports, the term life insurance purchases have increased among women by 80%. One thing that is even more impressive is that many women are choosing high-value plans, with a 120% rise in those opting for coverage of ₹2 crore or more. This strong move reflects that the women across India are becoming financially informed and proactive about securing their families’ future. This article explains everything you need to know about this growing trend among Indian women. 

Working women and housewives both lead the way 

Both working women and homemakers have taken important steps toward ensuring their families are protected. According to the surveys conducted on working women, including both salaried and self-employed professionals, 55-56% of term life insurance has been purchased. This shows that women today are not only earning but also taking charge of their financial planning to make sure that their loved ones are secured in every situation. 

At the same time, housewives have also made their presence felt, contributing around 40% of total purchases. This shows clearly that financial planning is no longer limited to active earners. Homemakers are also aware of the importance of financial security and how insurance helps ensure the safety of their families. 

High-value covers on the rise 

One of the strongest trends in the report is the increase in high-value term insurance plans. Working women have shown a clear preference for plans offering coverage of ₹2 crore or more. In fact, since 2022, the number of women opting for such policies has nearly doubled. 

This change indicates that women today are thinking for the long term. Even in the event of an unforeseen circumstance, they want their families to continue to have a steady financial future. This allows working women to support their families while meeting essential demands like loan payments or their children’s education. For housewives, this is about making sure their families have sufficient resources to cover costs and maintain their financial stability. 

Where are most purchases happening? 

The growing interest in term insurance is not limited to India’s metro cities. While big cities lead the way, smaller towns are catching up quickly. 

According to the report, metropolitan cities such as Delhi (8–10%), Hyderabad (6–7%), and Bengaluru (6–7%) are leading this trend. The proportion of working women is also greater in these cities, and they have more access to digital insurance services, which simplify the process of comparing and purchasing policies online. 

How age plays a role 

Age plays an important role; women in their late 20s and early 30s have emerged as the most active buyers of term insurance. For working women, the average age for purchasing a plan is around 31–32 years, while for homemakers it’s slightly lower, at 30–31 years. 

The age breakdown also reveals interesting insights: 

• Women aged 25–34 made up the largest group of buyers among both working women and homemakers.

• Housewives showed a slightly higher share in the under-25 age group compared to working women.

• The numbers drop slightly in the 35–39 age range but remain significant.

As awareness grows, many women are also learning what is term insurance and how it is different from traditional life insurance. This understanding is helping more women, even from smaller cities, make informed decisions about protecting their loved ones. 

Why are women choosing term insurance? 

There are several reasons why women today are choosing term insurance. Some of them are:  

• Digital awareness and easier access to online insurance platforms have made comparing and buying term plans very simple. Women can check coverage options, understand gains, and choose what suits their needs, all without depending on anyone else.

• Today many women are working and contributing to household income, which makes them more conscious about planning for unexpected situations. Even homemakers are realising the importance of having a term plan, as it ensures their family’s financial safety if something happens to them.

• Growing discussions about financial independence and long-term planning in society are encouraging women to think ahead. This collective shift shows that women are no longer passive participants in financial matters; they are leading from the front.

Adding riders for extra protection 

Along with higher coverage, many women are also choosing riders that offer add-on benefits and make term insurance more useful. These riders’ main objective is to offer additional protection against severe medical issues and unforeseen circumstances. For instance, a lot of women are adding critical illness riders, which offer financial assistance in the event that they are found to have conditions like cervical, ovarian, or breast cancer. Riders are responsible for ensuring that the policyholder receives a lump sum payment to help with treatment and medical bills during difficult times.  

Conclusion 

The rise in term insurance purchases among women shows how they are taking charge of their family’s financial safety. Both working women and homemakers are choosing higher coverage and useful riders for wider protection. With trusted insurers like Tata AIA, more women now have access to flexible and reliable plans that suit their needs. This growing awareness, even in smaller cities, reflects a strong shift toward financial independence and security. 

Disclaimer: The information provided above is for informational purposes only and is not intended as professional or legal advice. The Insurance Regulatory and Development Authority of India (IRDAI) is not responsible for any decisions made based on the information.    

Ref: https://www.livemint.com/insurance/news/women-term-plan-buyers-number-surged-80-per-cent-in-two-years-with-preference-growing-for-higher-cover-11726046896378.html