44% of women are opting for term insurance of Rs 1 crore or more: Report

In recent years, Indian women have shown a significant upswing in controlling their financial destinies by enhancing their investment in insurance and retirement security. According to a Policybazaar report, an insurance marketplace, there is a remarkable trend where 44% of women purchasing term insurance now opt for a coverage of Rs 1 crore or more. This statistic reflects a broader trend of financial empowerment among women as they increasingly participate in the workforce and access digital financial tools. 

Women’s participation in insurance  

Policybazaar's data indicate that the percentage of women purchasing term insurance has risen to 18% in the current financial year. Salaried women lead this category at 49%, followed by homemakers at 39%, underscoring a movement towards independent financial planning.

According to the data, there has been a notable change in financial decision-making, attributed to factors such as increased workforce participation, evolving gender roles, and greater availability of digital financial resources. In the current fiscal year, the proportion of women investing in term insurance has increased to 18%, with employed women accounting for 49% and homemaker following closely at 39%.

Term insurance

According to Policybazaar, a higher number of women are choosing term insurance as shown by recent statistics. The percentage of female purchasers has risen to 18% in the current fiscal year. This increase can be attributed to factors such as a rise in female workforce participation, changing financial responsibilities, and improved access to digital resources.

Salaried women vs self employed

In terms of demographics, the largest and fastest-growing group of term insurance buyers are salaried women, accounting for 49% of total purchases. This reflects a trend towards individual financial planning among women. Homemakers follow closely behind at 39%, often securing policies to safeguard their children's financial security. Self-employed women make up 12% of term insurance buyers, showing a steady increase as freelancers and entrepreneurs seek to secure their finances.

When looking at age distribution, individuals aged 18-30 make up 41% of term insurance buyers, indicating a growing awareness of financial security among young professionals. The age group of 31-40 years represents 48% of purchases, with many opting for term insurance at key life stages such as marriage, motherhood, and home ownership. The 41-50 years age group accounts for 10% of buyers, focusing on legacy planning and income protection.

Rs 1 crore+ cover

Policies providing coverage of Rs 1 crore or more are gaining popularity among individuals seeking comprehensive protection.

49% of individuals opt for coverage ranging from Rs 50 lakh to Rs 99 lakh, balancing affordability with adequate protection.

34% choose coverage between Rs 1 crore and Rs 1.99 crore, displaying a growing awareness of the need for inflation-adjusted financial planning.

10% opt for coverage exceeding Rs 2 crore, primarily high-income professionals and business owners.

Women show a preference for monthly premium payments to ensure cash flow flexibility.

Metro cities, including Delhi, Bangalore, Mumbai, Pune, Chennai, and Hyderabad, lead in the adoption of term insurance policies, as reported by PolicyBazaar.

Health insurance

The percentage of female policy proposers has risen from 15% in 2023 to 22% in 2025.
A significant 70-75% of women now choose health insurance with a sum insured of Rs 10 lakh or more, providing protection against escalating medical expenses.
Women aged 40 and above are increasingly opting for Rs 1 crore health insurance coverage, often utilizing super top-ups to manage premiums effectively.
Health insurance is now being embraced beyond major cities, with a notable increase in purchases from smaller urban centers. Tier-1 cities account for 46% of policies purchased, while tier-2 cities contribute 34%, indicating a higher level of financial awareness in these areas. Meanwhile, tier-3 cities represent 20% of purchases, demonstrating a wider penetration into smaller markets.

Health insurance cover amount

Female policy proposers have increased from 15% in 2023 to 22% in 2025.  
70-75% of women now opt for Rs 10 lakh+ sum insured, protecting against rising medical costs.  
Women aged 40+ are increasingly choosing Rs 1 crore health insurance, often using super top-ups to make premiums affordable.  
 
Health insurance uptake is no longer confined to major metropolitan areas, with a growing share of purchases coming from smaller cities. Tier-1 cities account for 46% of policies bought, while tier-2 cities contribute 34%, indicating greater financial awareness in these regions. Meanwhile, tier-3 cities make up 20% of purchases, pointing to deeper penetration into smaller markets.
 
Investment-linked insurance

As of February 2025, women make up 18% of total investments in ULIPs.
One-third of women's investments are allocated towards retirement planning and securing their children's future.
Close to 50% of investment-linked policies have a 5-pay term and a 20-year duration, striking a balance between affordability and long-term growth.
Women aged 31-45 are taking the lead in investing in ULIPs, demonstrating a trend of early financial planning.
The majority of investment activity is concentrated in tier-1 cities, where over 40% of women's investments are placed. Encouraging financial literacy initiatives in smaller towns is necessary to increase participation rates further.