68% of Bangalore residents say life insurance provides financial security in old age – A new survey from the Life Insurance Council
- Nearly 3/4 of respondents ranked life insurance among the three most important financial instruments, followed by savings bank account
- 58% of respondents living in the South believe that life insurance will help their family in the event of sudden death while 57% believe that life insurance will help increase family income in the event of illness
- The importance of life insurance as an instrument of financial security remained largely the same across all age groups and among men and women
The survey results indicated high awareness and that people of all age groups across India view life insurance as an important financial instrument. Most respondents highlighted the following reasons why they believe life insurance is necessary – Protection in the event of an unforeseen event, financial security for the future, and meeting the family’s collective financial goals. Of all respondents, 70% were willing to purchase life insurance. Indeed, due to the Covid-19 pandemic, a significant increase has been seen among people opting for life insurance. However, there is still a gap and a need for awareness of the importance of buying life insurance. While 91% of people consider it a necessity, only 70% are willing to invest in the same.
India’s southern belt showed less interest in life insurance among all cities surveyed with 64% attaching importance to life insurance compared to 78% in the north. This could be explained by the higher weight given to other financial instruments such as postal savings schemes. The south also had a lower level of ownership of life insurance compared to health insurance or the postal savings plan (PO) where ownership was higher compared to other regions. Southern markets showed less awareness and willingness to opt for life insurance compared to other parts of India. The mediums to purchase the same also differ from region to region. Digital payments are widely used in the South, with 60% of the total population using one or more digital wallets.
“We conducted this survey to primarily understand the perception, awareness and familiarity of life insurance among the Indian public. Our aim is to ensure that every member of an Indian family who earns money makes life insurance a top priority, in order to ensure a safe and healthy future for his We understand that care and responsibility go hand in hand, and we wish to uphold this mindset and educate Indians so that we can offer the best life insurance solutions,” said MSN Bhattacharya, General Secretary of the Life Insurance Council. Additionally, several interesting trends emerged from the results indicating how much more people are aware of the importance of life insurance. ‘life insurance :
- Among all other financial instruments, life insurance has near universal levels of awareness with around 96% compared to mutual funds (63%) or stocks (39%).
- The importance of life insurance as a financial instrument remained largely the same across all age groups and among men and women.
- More people above the 36 age group own life insurance than younger people Half of respondents prefer to buy life insurance from an insurance agent while three out of 10 prefer banks.
- Younger audiences prefer buying life insurance policies through online channels, allowing them to compare multiple offers, benefits and premiums
- About half (47%) of total respondents said they or a family member had life insurance and knew a lot about it.
The survey also revealed that investing in life insurance is perceived to be long-term and expensive – these are the two main barriers to adoption. The Life Insurance Council with this survey and its campaign “Sabse Pehie Life Insurance” aims not only to educate on the importance of life insurance but also to eradicate the malfeasance that misleads people about the category and the products. It is essential that people view life insurance in the right light for a better and more secure future for themselves and their families.
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