Women Increasingly Opt For Term Insurance For Financial Security: Survey

A survey conducted by PolicyBazaar has found that working women and homemakers are increasingly turning to term insurance to secure their family's financial future. The survey reveals that women are moving away from traditional financial planning roles and actively seeking ways to build a financially stable life for themselves and their families.

According to the survey, approximately 45 per cent of homemakers actively participate in decisions regarding term insurance investments, alongside their husbands. This trend is also observed among salaried women (81 per cent) and self-employed women (66 per cent), who often make joint decisions regarding term insurance.

When women make independent decisions about insurance coverage, the survey shows that they tend to opt for higher coverage amounts. Education plays a pivotal role in these independent decisions, with nearly 58 per cent of women purchasing term insurance independently being graduates or holding higher degrees. Among salaried women, 50 per cent choose to make independent decisions.

Region-wise, Western India leads the survey, with 36 per cent of women in Tier-I and Tier-II cities making individualistic choices, exceeding the national average of 27 per cent.

The survey highlights that securing their children's future is the top motivation for married women with kids to choose term insurance. Additionally, 39 per cent of married women without children and 16 per cent of single women also cite future child security as a reason for selecting term insurance. Nearly 69 per cent of women mention aging parents as the reason behind their choice of term insurance.

Word of mouth is the primary method for spreading awareness about term insurance among women, with over 35 per cent stating that they receive information through family members or friends. Social media follows closely behind, with 25 per cent turning to these platforms for information. In the higher income bracket of Rs 10 lakh and above, insurance agents play a significant role in raising awareness.

Comparatively, the survey finds that women opt for higher coverage amounts than men. About 44 per cent of women select coverage of Rs 1 crore and above, either as primary or joint decision-makers. In contrast, only 13 per cent of men choose such high coverage for their wives, regardless of their employment status. The survey notes that when men are the primary decision-makers, approximately 76 per cent choose coverage in the range of Rs 20-50 lakh.