Working women and homemakers are increasingly looking towards term insurance to ensure a financially secure life for their dependents, a survey by PolicyBazaar revealed. The survey highlighted that women are moving away from their traditional outlook toward financial planning and are actively seeking to build a financially stable life for themselves and their families.
The survey further stated that nearly 45 per cent of homemakers showed active participation when deciding on investments in term insurance, along with their husbands. “This trend extends to salaried (81 percent) and self-employed (66 percent) women who often make joint decisions regarding term insurance,” it noted, as reported by CNBC TV18.
Further, the survey reported that when the decision regarding insurance was left entirely up to women, high coverage seemed to be the popular choice.
Among the factors impacting insurance decisions taken independently by women, education emerged as one of the pivotal ones. The survey found that nearly 58 per cent of women purchasing term insurance independently are either graduates or possess higher degrees. It further stressed that 50 per cent of salaried women opted for independent decisions.
Region-wise, independent women in Western India came out on top of the survey, with 36 per cent of women in Tier-I and Tier-II cities opting for individualistic choices, more than the national average of 27 per cent.
Securing their children’s future emerged as the top motive amongst married women with kids for opting for term insurance. Simultaneously, 39 per cent of married women without offspring also provided the same reason for choosing term insurance. Further, 16 per cent of single women stated that they opted for term insurance to enhance security for future children. In the same category, nearly 69 per cent of women provided aging parents as the reasoning behind going with term insurance.
The survey highlighted that word of mouth emerged as the primary method to spread awareness amongst women regarding term insurance plans. Over 35 per cent of respondents stated that they received information about term insurance for women through a family member or a friend.
Recognising social media as the next factor, the survey stated, “Social media follows closely behind, with 25 percent of respondents turning to these platforms for information. In the higher income bracket of Rs 10 lakh and above, insurance agents play a significant role in spreading awareness.”
In comparison with men, the survey found that more women opted for higher coverage. It noted that about 44 per cent of women selected coverage of Rs 1 crore and above, either as primary or joint decision-makers. In comparison, only 13 per cent of men chose such high coverage for their wives, irrespective of their employment status. The survey stated that with men as the primary decision makers, about 76 per cent of them chose coverage in the range of Rs 20-50 lakh.
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