Term insurance uptake among women in India has reached 18% this fiscal year, according to recent data from Policybazaar.
This surge highlights a growing awareness and demand for financial protection within this demographic. Salaried women make up a substantial portion and are key drivers of this trend, representing 49% of term insurance buyers. Homemakers account for 39%, while self-employed women comprise the remaining 12% Among buyers, the largest group consists of women aged 31 to 40, contributing to 48% of total term insurance purchases.
The report indicates a preference for more comprehensive coverage, with 44% of women opting for policies valued at ₹1 crore or more. Furthermore, the majority (nearly 90%) prefer monthly premium payments, likely to facilitate easier budgeting and financial management. Metro cities, including Delhi, Bangalore, and Mumbai, have the highest adoption rates, reflecting greater access to financial products and services.
This growing trend extends beyond term insurance, with women’s participation in health insurance also increasing. Health insurance uptake among women has grown from 15% in fiscal year 2023 to 22% in fiscal year 2025. The data reveals a shift towards higher sum insured amounts, with approximately 70% to 75% of women now selecting coverage of ₹10 lakh or more, a response to escalating healthcare costs. Women over 40 are increasingly favoring ₹1 crore coverage options, including the use of super top-ups, to maintain affordability. As with term insurance, health insurance adoption is most prevalent in metropolitan areas; however, Tier 1 and Tier 2 cities are also showing increased participation rates.
Investment-linked insurance products, specifically Unit Linked Insurance Plans (ULIPs), are also attracting more engagement from women. Female investors contribute to 18% of ULIP investments. Middle-aged women (31-45) account for over half these investments, with almost a third coming from women aged 30 or younger. Tier 1 cities dominate with over 40% of total investments in this segment.
