By Rhishabh Garg
The Indian insurance industry has taken significant steps in recent years to enhance the accessibility and affordability of term insurance for women. Tailored solutions are continuously being developed to address the diverse needs of both homemakers as well as working women effectively.
Coming-of-age products
As homemakers add financial value to their households and the future of their dependents need to be secured, independent term plans are a big safety net for them. Historically, homemakers relied on their spouse’s financial standing for a life cover, often resulting in inadequate coverage. In absence of tangible financial income, homemakers’ chance at financial protection was a shared joint life cover taken by their spouse.
New-age independent term homemaker plans have eliminated this dependency, allowing homemakers to independently purchase coverage of up to Rs 1 crore with flexible prerequisites, such as an annual household income of Rs 5 lakh and a minimum educational qualification of 10th/12th pass.
Customised underwriting
New-age products demand new-age underwriting practices, which has been made possible by technological innovation. Understanding mortality and morbidity rates is essential, as they directly impact term insurance premiums. Women’s statistically longer life expectancy results in decreased policyholder mortality risk, translating into tangible benefits with significantly lower premiums. Given that women have lower mortality and morbidity rates compared to men, the premium is 30% cheaper.
Comprehensive protection
Insurance is a product that does not offer instant gratification. A term insurance being a pure protection product is often seen as a cost and not an investment. But term insurance plays a pivotal role in empowering women economically and securing their family’s financial future. New-age plans also grant them the ability to take financial matters into their own hands and leave a legacy behind.
The advent of more affordable plans tailored for women fosters higher insurance adoption rates among them. For instance, a term cover of Rs 1 crore for a 30-year-old, non-smoking, salaried woman starts from a monthly premium of Rs 677, while the same plan for a male will cost Rs 818. This affordability positively impacts a family’s ability to sustain its quality of life, meet financial obligations, and pursue long-term objectives.
Also, premiums paid towards term plans are eligible for tax exemptions under Section 80C of the Income Tax Act, and the death benefit pay-out is tax-free under Section 10(10D). This acts as a key motivator, paving the way for a more inclusive and empowered society where women confidently navigate their financial future.
The writer is head, Term Insurance, Policybazaar.com. Views expressed are personal.