Insurance FAQs for women

From supervising home budgets to behemoth multinational deals, women have always been directly involved in managing finances. However, the playing field still hasn’t been levelled. Even today, only 50% of urban women have insurance as compared to 72% men. IRDAI’s annual report 2019 reveals that participation of women in life insurance amounted to only 37% of first year premium in FY2019.

While women have honed their financial management skills, it is equally critical to mindfully craft a financial plan which protects them, their dependents, and their hard-earned wealth against unforeseen circumstances.

It is important that women from all walks of life — working professionals and homemakers in urban and rural India— invest in insurance plans and long-term care to ensure seamless finances, comfort, and a sense of security after retirement. Let us also look at the various types of insurance products that meet these very needs.

Insurance for Life and Financial Planning

The fact that there is lower premium for life insurance for women on account of higher life expectancy and lower risk makes it an obvious choice. In the fast-changing world coupled with diversity inclusion at workplaces, more women have joined the workforce and become financially independent. They shoulder big professional responsibilities and contribute towards their child’s well-being.

Even in the case of homemakers, their life has significant financial value. Fund allocations to ensure a household keeps functioning in this scenario becomes critical. Having a life insurance policy in place ensures that a family can comfortably stay afloat in difficult times.

Car Insurance

Today, it is not uncommon for women in urban segments of society to own cars. To ensure the continuity of vehicle ownership and ward off untoward events, insurance is indispensable. While gender undeniably impacts car insurance premiums rates, it protects one from barrelling into a financial contingency situation.

Health Insurance

Despite reiterating the importance given to women’s health, women tend to overlook their own well-being and consequently have little to no coverage at all. Unlike previous generations, today, women of every age need insurance to ensure optimum health without creating a hole in their pocket in case of medical emergencies.

While the incidence of mortality for women in India is lower than men, due to change in lifestyles, the number of women suffering from critical illnesses, childbirth related diseases and infertility are much higher. This is especially prevalent in villages where nutrition and sanitation conditions are not up to the mark. Maintaining health insurance is important even otherwise to safeguard against health problems for women across the spectrum.

Insurance for Wealth-Home Loans

Women are building wealth, owning assets, and carefully weighing in on important decisions such as buying a home. They enjoy lower tax slab rates and preferential interest rates on home loans. Some Indian states have lowered stamp duty if the property is registered in the name of the woman. More and more women are recognising this and equally participating in home loans as co-borrowers.

By systematically evaluating different areas of their lives, women should take proactive steps to ensure adequate coverage for the uncertainties they face. Organisations should also facilitate financial and social inclusion by building an integrated system to create women-centric insurance products.

(The writer is Appointed Actuary, IndiaFirst Life Insurance Company Limited. Views expressed are personal)