Term insurance uptake by women in India rises to 18%

Salaried women make up nearly half of buyers.

Term insurance uptake amongst women in India has risen to 18% in the current fiscal year, according to Policybazaar.

Salaried women make up 49% of buyers, with homemakers accounting for 39% and self-employed women at 12%. 

Women aged 31 to 40 are the most active demographic, comprising 48% of term insurance purchasers. 

The popularity of higher coverage is evident, with 44% opting for policies worth ₹1 crore or more. 

Nearly 90% of women prefer monthly premium payments for better budget management. Metro cities, including Delhi, Bangalore, and Mumbai, lead in adoption rates.

Health insurance participation by women has also grown, rising from 15% in fiscal year 2023 (FY 2023) to 22% in FY 2025. 

About 70% to 75% of women now choose a sum insured of ₹10 lakh or more to address rising medical costs.

Women aged 40 and above increasingly prefer ₹1 crore coverage, often utilising super top-ups to maintain affordability.

Health insurance uptake remains highest in metro areas, though Tier 1 and Tier 2 cities are showing increased participation.

Investment-linked insurance products also see more engagement from women, with 18% of investments in Unit Linked Insurance Plans (ULIPs) attributed to female investors.

Middle-aged women (31 to 45) account for over half of these investments, whilst nearly one-third are made by women aged 30 or younger. 

Tier 1 cities dominate in investment-linked insurance, with over 40% of total investments coming from these areas.