Single Mothers’ Insurance: Security or Constraint?

Bangladesh is witnessing a steady rise in the number of single mothers, making financial security an increasingly pressing concern. Women raising children alone must manage household expenses and secure their children’s future, often on limited incomes. In this context, savings and life insurance are no longer luxuries—they are vital instruments for long-term financial protection.

Despite growing awareness, insurance penetration in Bangladesh remains low. According to the Insurance Development and Regulatory Authority (IDRA), the sector’s reach is currently between 0.40% and 0.50%, significantly lower than regional benchmarks. This gap underscores the need for targeted initiatives, particularly for women-headed households.

Several insurance companies have launched women-focused products in recent years. Guardian Life Insurance offers the Easylife Jaya policy, which combines regular monthly savings with life insurance and critical illness coverage. With a monthly premium of only 350 taka, policyholders can access health protection of up to 500,000 taka, providing an affordable solution for low- and middle-income women.

Green Delta Insurance has developed the Nibedita plan, which addresses unique risks faced by women. In addition to accidental death coverage, it provides financial assistance for acid attacks, sexual assault, and robberies. Annual premiums begin at 580 taka, with coverage ranging from 100,000 to 1,000,000 taka, making it a robust safety net for women in vulnerable situations.

MetLife Bangladesh offers the Education Protection Plan, designed to ensure the educational continuity of children in the event of a mother’s death. In 2024, the company settled claims amounting to 2,895 crore taka, with a settlement rate of 97.79%. Under this plan, 2% of the insured sum is paid monthly toward the child’s education, while future premiums are waived, offering both immediate and long-term support.

These policies provide layered protection: they secure children’s education, address major health risks, and encourage regular savings. Research in the International Journal for Equity in Health shows that nearly 26% of Bangladeshi households face financial crises when confronted with serious medical expenses. Additionally, with approximately 26% of business owners in the country being women, such savings-based insurance plays a crucial role in fostering long-term financial independence.

Challenges persist. The average claim settlement rate in the life insurance sector was 66.03% in 2024, slightly lower than the previous year, potentially affecting public confidence. Inflation can erode the real value of long-term savings, and insurance access remains limited in rural areas, constraining inclusive protection.

Experts emphasise the importance of raising awareness, ensuring transparency in claims, and improving accessibility to expand women-focused insurance. Government-backed initiatives are planned: a joint study by the Centre for Policy Dialogue (CPD) and the ARK Foundation projects the launch of a maternity protection insurance scheme by 2026. With annual premiums ranging from 60 to 1,015 taka, the programme would provide coverage of up to 41,000 taka, creating a preliminary safety net for low-income single mothers.

Key Women-Centric Insurance Policies in Bangladesh