One-third of women's investments go to children and retirement, data shows

Women in India are increasingly taking control of their financial future, with a growing number opting for higher insurance coverage and investment-linked policies. According to data from Policybazaar, an insurance marketplace, 44% of women purchasing term insurance now choose cover of Rs 1 crore or more.

 

Sameep Singh, investment product head at Policybazaar, said their research shows a clear trend in how women allocate their investments. “Approximately one-third of their investments are dedicated to securing their retirement and ensuring their children’s financial well-being. This strategic allocation not only lays a solid foundation for their own financial independence but also safeguards the futures of their loved ones.”

 

 

Women’s participation in insurance on the rise

 

The data shows a shift in financial decision-making, influenced by higher workforce participation, changing gender roles, and increased access to digital financial tools. The percentage of women purchasing term insurance has risen to 18% in the current financial year, with salaried women leading at 49%, followed by homemakers at 39%.

 

To mark International Women’s Day on March 8, ManipalCigna also released a report echoing these findings. The data shows a 13.8-fold increase in policies purchased by women, with the total rising from 28,741 in 2023 to 353,943 in 2024.

 

Key findings from ManipalCigna’s report:

< Women aged 35-49 make up 27.29% of total female policyholders in 2024.

< The under-25 segment follows closely at 26.73%, showing strong participation from younger women.

< Women proposers in health insurance have increased from 15% to 22%.

< Women aged 40+ prefer Rs 25 lakh+ sum insured in health insurance, with many using super top-ups for affordability.

 

Sapna Desai, chief marketing officer at ManipalCigna Health Insurance, said women are taking a proactive approach to their financial and healthcare decisions. “As women increasingly take charge of their healthcare and finances, we witness a transformative shift in their approach to well-being and financial security. By proactively managing their health insurance, they are ensuring they are better equipped to face life’s uncertainties.”

 

Women and term life insurance

 

More women are opting for term insurance, reveals Policybazaar:

The percentage of women purchasing term insurance has grown to 18% this financial year.

Key drivers include increased workforce participation, evolving financial roles, and greater access to digital tools.

 

Who’s buying?  

Salaried women: 49% – the largest and fastest-growing group, reflecting a shift towards independent financial planning.  

Homemakers: 39% – a growing segment, often securing policies to protect their children’s future.  

Self-employed women: 12% – a steady increase as freelancers and entrepreneurs seek financial security.

 

Age-wise distribution of term insurance buyers:  

18-30 years: 41% – young professionals increasingly prioritising financial security.  

31-40 years: 48% – peak adoption phase, often linked to key milestones like marriage, motherhood, and home loans.  

41-50 years: 10% – a growing segment focused on legacy planning and income replacement.  

 

Rs 1 crore+ cover gaining popularity:

Rs 50 lakh-Rs 99 lakh: 49% – balancing affordability with sufficient protection.  

Rs 1 crore-Rs 1.99 crore: 34% – steadily increasing awareness about inflation-adjusted financial planning.  

Rs 2 crore+: 10% – primarily chosen by high-income professionals and business owners.  

 

90% of women prefer monthly premium payments, favouring cash flow flexibility. Meanwhile, metro cities lead in term insurance adoption, with Delhi, Bangalore, Mumbai, Pune, Chennai, and Hyderabad topping the list, according to PolicyBazaar.

 

Women and health insurance

 

Women’s participation in health insurance has grown:

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.

 

Women and investment-linked insurance

 

Key trends in investment-linked policies, according to the insurance marketplace:

 

<Women now account for 18% of total investments in ULIPs as of February 2025.  

<One-third of women’s investments go towards retirement planning and their children’s future.  

<Nearly 50% of investment-linked policies follow a 5-pay term with a 20-year duration, balancing affordability with long-term growth.  

<Women aged 31-45 lead investments in ULIPs, with many starting financial planning early.    Note: The Insurance Regulatory and Development Authority of India (Irdai) last year asked life insurance companies not to advertise unit-linked plans as investment products in a circular. “Unit-linked or index-linked insurance products shall not be advertised as ‘investment products’. In the case of unit-linked insurance products (Ulip), index-linked products, and annuity products with variable annuity payout options, the risk factors shall be disclosed,” the regulator said.

 

Investment participation remains highest in tier-1 cities, where 40%+ of total investments by women are made. Financial literacy initiatives are needed to further boost participation in smaller towns.