If you need more of an indication that Indian women are slowly taking charge of their finances, this is it, because the number of women who are buying life insurance has increased according to the annual report published by The Insurance Regulatory and Development Authority of India (IRDAI). For the year 2018 to 2019, 36 percent of 28.6 million policies sold during that financial year, in the year prior to this, women bought 32 percent of all the life insurance sold in the country.
Women have different needs and are looking for niche products
The data also revealed that out of the 10.3 million policies bought by Indian women, ‘one-third of the policies have come from three states including West Bengal, Uttar Pradesh, and Maharashtra. Life Insurance Corporation of India (LIC) is more trusted by women than private insurers. The proportion of policies sold by LIC is 39 percent while it is 27 percent in the case of private insurers.’ Other studies have also shown that life insurers are creating niche insurance products specifically for women because in terms of this kind of insurance women have different needs. These products will assist them during various stages of life like marriage, childbirth, and menopause, but this means that if these are being marketed to women, women also need to sell them.
Women are lagging behind with regards to their retirement savings
According to the World Health Organization, women are living six to eight years longer than men, however, despite this, women are lagging behind with regards to their retirement savings. Moreover, women are also facing the gender wage gap and a majority of Indian women are not employed and are working unpaid jobs. During retirement, women will face a savings gap which will make them struggle with other expenses like healthcare and housing. “These extra years translate into higher living expenses and the possibility of higher medical and long-term care expenses. There are generally four strategies you can use to address the possibility of a longer life span. Save more, have a balanced portfolio mix, consider if insurance can help protect you in case of a disability or long-term care need, and consider working past typical retirement age,” says, Michelle Young, a financial planner and Ameriprise private wealth adviser based in Edina, Minnesota.
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