Insurance for Single Mothers: Protection or Restriction?

The number of single mothers in Bangladesh is steadily rising, bringing the issue of financial security into sharp focus. For women raising children alone on limited incomes, the responsibility of managing household expenses and securing their children’s future rests entirely on their shoulders. In this context, savings and life insurance are increasingly viewed not as luxuries but as essential tools for financial protection.

Despite its growing importance, the insurance sector in Bangladesh remains underdeveloped. According to the Insurance Development and Regulatory Authority (IDRA), insurance penetration in the country is still limited, hovering between 0.40% and 0.50%, which is relatively low compared to regional standards.

Nevertheless, several insurers have recently launched women-focused policies tailored to the needs of single mothers. Guardian Life Insurance offers the ‘Easylife Jaya’ plan, which combines monthly savings with life and critical illness coverage. For a modest monthly premium of 350 taka, policyholders can receive up to 500,000 taka in health protection, making it accessible for women with low to middle incomes.

Similarly, Green Delta Insurance has introduced the ‘Nibedita’ plan, designed to provide financial support in cases of accidental death, acid attacks, sexual assault, or robbery. Annual premiums start at 580 taka, with coverage ranging from 100,000 to 1,000,000 taka, offering a vital safety net for women exposed to high-risk situations.

MetLife Bangladesh has developed the ‘Education Protection Plan’, which ensures long-term financial security for single mothers. In 2024, the company settled claims worth 2,895 crore taka with a settlement rate of 97.79%. Under this plan, in the event of a mother’s death, 2% of the insured amount is provided monthly to continue the child’s education, and future premiums are waived, ensuring uninterrupted educational support.

These policies offer multi-layered protection: maintaining children’s education in the mother’s absence, covering major health risks, and fostering long-term savings habits. Research published in the International Journal for Equity in Health indicates that approximately 26% of families in Bangladesh face financial hardship due to treatment costs for serious illnesses, highlighting the critical role of health-inclusive insurance. Furthermore, with around 26% of business owners in the country being women, savings-based insurance is crucial for ensuring financial independence in later life.

However, challenges remain. In 2024, the average claim settlement rate in the life insurance sector was 66.03%, slightly lower than the previous year, which may affect public confidence. Inflation also threatens the real value of long-term savings, and rural access to insurance services remains limited, constraining inclusive financial protection.

Experts suggest that expanding women-focused insurance requires raising awareness, improving transparency in claims, and enhancing accessibility. Government initiatives are underway: a joint study by the Centre for Policy Dialogue (CPD) and the ARK Foundation proposes launching a maternity protection insurance plan by 2026. With annual premiums between 60 and 1,015 taka, this plan will offer coverage of up to 41,000 taka, providing a foundational safety net for low-income women.

Selected Women-Focused Insurance Policies in Bangladesh