Why life insurance should be every woman’s superpower

This Mother’s Day, let’s go beyond just traditional token tributes and ask a deeper question - who’s protecting the protector?

Women, especially mothers, are the emotional anchors, financial co-pilots, and silent shock absorbers of their families. They plan school admissions, health check-ups, groceries, and life goals. But how often do they plan for their own financial safety?

The reality is more concerning than it appears - while women insure and nurture their families with care, they are often left uninsured. Sadly, the emotional labour and earnings of women are often undervalued and overlooked - and so is the need of life insurance for them.

There’s a pressing need to move beyond the outdated notion that life insurance is solely a safeguard for men. Life insurance must be seen as a strategic and empowering financial decision for every woman.

The Protection Gap Women Can’t Ignore

There’s a rise in the financial participation by women in India. According to a 2024 NITI Aayog report, the number of women taking loans has nearly tripled in five years from 20 lakh in 2019 to over 2.7 crore in 2024. After taking loans, the risk of paying back increases and as a family member, no one needs their liabilities and debt to be transferred to their family in their absence so they need a strong backup - a life insurance coverage. Even homemakers, who form the foundation of their families’ emotional and physical wellbeing, are often left out of the insurance conversation. The cost of her absence whether due to illness, death, or other unexpected events can have a huge financial impact.

Critical Illness: A Growing Concern

According to the Indian Council of Medical Research (ICMR), cancer cases among women are steadily rising, with breast, cervical, ovarian, and lung cancers being the most common. The physical toll is immense, but so is the financial burden, especially when treatment spans months or years. For example, Breast Cancer, which affects 1 in 22 women in India, is a reminder of why critical illness coverage is a need of the hour and shouldn’t be ignored. This is where critical illness riders play a life-changing role. When attached to a base life insurance plan, they offer a lump sum payout (also called critical illness benefit) directly to the policyholder upon diagnosis of a covered critical illness as per conditions specified under policy document. As per IRDAI guidelines, health-related riders like critical illness can have premiums up to 100% of the base plan, while all other riders combined must stay within 30%, making CI riders an affordable and valuable addition. This makes critical illness riders an affordable addition to the life insurance plan. Moreover, many policies include a waiver of premium benefit - meaning in the event of death due to critical illness, all future premiums are waived off and paid by the insurance company, ensuring the policy continues without burdening the family financially.

Women Live Longer – Their Money Should Too

According to the 2021 World Economic Forum report, women live longer than men but tend to save just 60–75% of what men do for retirement. This savings gap, coupled with increasing life expectancy, makes it even more critical for women to plan long-term. According to recent data, the life expectancy of Indian women has risen to over 70 years and continues to improve. That means more years of retirement to fund, more medical needs to plan for, and a stronger case for a reliable financial cushion. Life insurance policies that include savings and annuity features can offer essential support post-retirement. They also provide continuity in protection during career breaks for caregiving, ensuring financial safety even when income flows are disrupted.

A Vital Tool for Single Working Mothers

Single working mothers face unique challenges. Balancing household chores, child care and financial responsibilities simultaneously without the support of a partner can be challenging. For single mothers, life insurance can serve as an essential financial tool that can help provide her children with security in the event of an unforeseen event. Term Insurance Plans with add-on riders, Endowment Plans, ULIP plans, Child Insurance Plans, and Retirement Plans can offer strong support. Riders such as premium waivers can further protect children from financial liabilities in the absence of a parent.

Homemakers Too Deserve Protection

Homemakers may not bring in formal salary but their contributions are irreplaceable. In 2018, Deutsche Bank released a study that stated if homemakers were paid for all the services they provide, their contribution would amount to nearly 23% of India’s GDP. Yet, lacking formal income, homemakers are often excluded from independently purchasing life insurance.

However, that doesn’t mean they should remain uninsured. Spouses can and should buy a life cover for homemakers. Life insurance companies offer joint life policies or spouse cover options, where the earning partner can include their non-earning spouse under the same plan. In most joint or spouse cover plans, the homemaker’s cover is capped at 50% of the primary insured’s sum assured. This is to align with underwriting standards that assess financial dependency and insurability.

For example, if the earning spouse has a sum assured of Rs 1 crore, the homemaker may typically be eligible for a cover of up to Rs 50 Lakhs. It’s time we give our homemakers the financial security they deserve.

This Mother’s Day, let’s redefine what protection truly means. Beyond nurturing, beyond caregiving, it’s about securing the future with intention. Life insurance is not just a policy, it’s a legacy of foresight and strength. Also, for women, it’s also a smart financial move. Premiums for life insurance are typically lower than for men, making it more affordable to build a strong safety net for their families.

For every woman who builds homes, holds families together, and shapes generations, financial protection should be her right, not an afterthought as it’s said, “Empowered women don’t just plan for today, they protect every tomorrow.”