Why Women Don't Purchase Enough Life Insurance?

Over the years, the number of insurance buyers in India has increased significantly. But, the number of women policy buyers has not increased proportionately. Many women still feel sceptical about buying life insurance. Read on to know why?In India, many people, especially women, avoid buying a life insurance policy mainly because they believe it is unnecessary or doesn't understand its importance. According to an online survey, both men and women believe that their untimely demise would have a significant impact on their families. However, only 67% of the women who participated in the survey had life insurance compared to 79% of the men.So, why do women don't purchase enough life insurance? Here are a few important reasons:One of the most significant reasons why life insurance for women has a low penetration in India is that most women have minimal or zero knowledge about the risk of not having insurance cover. 'I am young, and nothing will happen to me' is a common perception among Indians, particularly millennial working women. So, they prefer to be self-insured rather than buy an insurance policy.Today, the insurance companies in India offer a variety of life insurance products. You can even find special life insurance for women. However, the availability of different plans tends to confuse the buyers, making it difficult for them to choose the right plan. There are life insurance policies that cover only the death risk. Other plans like the Unit Linked Insurance Plan or ULIP offer the dual benefit of insurance protection and investment.Another common reason why most women avoid buying a life insurance policy is that they believe the insurance offered by their employer is sufficient. However, you must know that the group insurance provides limited coverage, which may not be enough to cover your family's needs. When you quit the organisation, the policy will cease to exist, and you will be left with no insurance. To ensure that you provide maximum protection to your family, it is advisable to buy personal life insurance for women.Many women in India put off buying life insurance policy because they believe that they can buy it later when they turn old. However, it would help if you purchased a policy as early as possible. When you are young, you would be healthy and strong, and the insurers tend to offer higher coverage at lower premiums to young and healthy individuals.A general notion among women is that life insurance policy is expensive. However, the truth is that a term life insurance plan is quite affordable; you can find a policy with a premium as low as Rs. 500 per month.

Life insurance for women is critical to provide financial protection to the family in the event of your untimely demise. While buying a policy, make sure that you do your research well and choose the right plant to suit your specific needs.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.