Women underinsured than men:Birla Sun Life Insurance survey

Women are under-insured in India, as per a report by Birla Sun Life Insurance. The report said that as of today, only 50 percent of women in the urban internet population in India have life insurance coverage as compared to 72 percent of men who have purchased life insurance solutions. 

These numbers are well below expectation when it comes to the total women population in India. Women comprise only 23 percent of Birla Sun Life Insurance’s (BSLI) overall customer portfolio.

Pankaj Razdan, MD & CEO, Birla Sun Life Insurance said that we do not give due attention to the risks existing in a woman’s life, which is at times even more than a man’s.

“It is therefore evident that that a woman should take cognizance of her importance in her family members’ lives and opt for solutions that offers protection against life risks, can be an emergency fund and will also fulfill her and her family’s financial goals in the future,” he added. 

The report said that only 26 percent women start insuring themselves early i.e. when they are in the age group of 20-30 years. This trend has not changed since inception of life insurance products. 

Women in the middle income group focus most on purchasing life insurance products, according to the report. While women in the middle income group invest most in savings linked products, others invest a tad more in wealth related products closely followed by savings. Wealth related purchase is most popular amongst the lower income group. 

Further, the purchase of retirement related products is directly proportional to the income. Women in the higher income bracket plan better for their retirement. Purchase of protection plans though abysmally low is higher for the affluent and the upper income group as compared to the middle and the lower. 

BSLI’s claims data reveals that there is an increase in the number of cases where women have benefitted as beneficiaries. The percentage of women nominees benefitting has gone up by 4 percent in 2016-17 (YTD Jan) as compared to the previous year. 

Here, heart related disorders followed by cancer are the two health related cause for claims payout for women. Unnatural or accidental death is another reason for claims.