Why Women don’t buy Life Insurance : Insurance coverage on the lives of women originates from three primary channels. Firstly, women employed in the government or private sector often insure their own lives. Secondly, those engaged in private tuition, event management, artisanal work, tailoring, etc., also seek coverage. Thirdly, homemakers and their spouses contribute to policies, covering women as beneficiaries.
Factors Why Women don’t buy Life Insurance Policy
Coverage Disparities
Less than 50% of policies are sold to women in large cities, with smaller cities showing even lower proportions. A challenge arises when women, declaring occupations like private tuition or tailoring, might lack earned income. In many cases, premiums are paid by husbands or family members, making it challenging for insurers to verify the accuracy of statements in proposal forms.
Low Penetration and Financial Planning
Despite Indian women’s natural inclination towards savings and financial planning, the number of active policies is surprisingly low at around 100 million. While women prioritize children’s education, post-retirement life, and passing on wealth, they often overlook the importance of life insurance. Some working women believe their families do not depend on their incomes, but uncertainties like accidents, critical illnesses, and gender-specific diseases highlight the need for financial protection.
Managing Longevity Risks
In many Indian households, women bear the responsibility for overall family welfare. Women must engage in prudent financial planning to mitigate adverse impacts from poor saving and investment decisions. A Swiss Re report notes that women worldwide, including Indian women, spend more on healthcare but are less prepared to manage mortality and longevity risks. Despite showing concern for aging parents, this care doesn’t always translate into adequate life insurance coverage.
Addressing the Discrepancy
To bridge this gap, efforts should be directed at increasing awareness about the importance of life insurance among women. Educational initiatives can help women understand the financial implications of unforeseen events and the role life insurance plays in mitigating such impacts. Insurers may also explore simplified underwriting processes to encourage more women, especially those (Why Women don’t buy Life Insurance) in unconventional occupations, to secure coverage. Empowering women with financial knowledge and showcasing the value of life insurance can contribute to a more secure financial future for families across the spectrum.
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