India counts among the most underinsured countries in the world, but according to a survey by the Life Insurance Council, Indians are increasingly realising the importance of ‘Sabse Pehle Life Insurance’.
It is critical that people perceive life insurance in the right light for a safer, better future for themselves and their families. The survey, conducted across 40 cities with over 12,000 people to understand the Indian audience’s perception towards life insurance, represents the joint efforts of 24 Indian life insurance companies. It is aligned with Life Insurance Council’s new public awareness campaign “Sabse Pehle Life Insurance” which positions life insurance as a top priority for the earning members of the family.
The report, commissioned in partnership with Hansa Research, included audiences between the ages of 25-55 years with cities divided amongst eight metro cities, nine tier-1 cities and 23 tier-2 cities. The findings indicated high awareness among all age groups across India of life insurance as an important financial instrument. According to a majority of the respondents, purchasing life insurance offered protection in an unforeseen event, financial security for the future and achieving the collective financial goals of the family.
Of the total respondents, 71% were already secured owners of life insurance or were keen to buy one. The survey discovered that while the Covid-19 pandemic had accelerated the adoption of life insurance, there was still a need to raise awareness about its importance. In fact, while 91% of the people consider it a necessity, only 70% are willing to invest in it. The importance of Life insurance as an instrument largely remained the same across age groups and among both males and females. Almost 3/4th of the respondents ranked Life Insurance among the top three most important financial instruments, followed by a Savings Bank Account. Nearly 61% of parents believe Life Insurance assists in their child’s education and marriage expenses.
Several interesting trends emerged from the findings indicating the increased awareness about the significance of life insurance:
Among all other financial instruments, Life Insurance has near universal awareness levels with around 96% as compared to mutual funds (63%) or equity shares (39%).
The importance of Life Insurance as a financial instrument largely remained the same across age groups and both males and females.
More people above the age of 36 years own life insurance than youngsters.
Half of the respondents prefer buying Life Insurance from an Insurance Agent while three in 10 prefer banks.
Younger audiences prefer to purchase Life Insurance policies through online channels, which enables them to compare multiple offerings, benefits, and premiums.
Approximately half (47%) of the total respondents claimed that they or someone in their family holds a Life Insurance policy and knows a lot about it.
High awareness of life insurance in north India
In the northern zone of India, 98% of respondents confirmed they were aware about what life insurance stands for, with 94% people stating they believed it was necessary and 70% expressing the desire to buy life insurance for themselves or their families. In Delhi, nearly 44% believe that life insurance helps to grow your money while keeping it safe. Additionally, Delhi also has 80% people using one or more social media channels, which gives them a chance to obtain updated information on the latest on-goings in the world of life insurance.
Popular among millennials in the west India
The west market findings highlighted that a large group of young adults and millennials were not only aware of life insurance but also willing to invest in it. In Mumbai, 86% of people believe that Life Insurance provides protection to families, while 73% in Pune said the claim process is easy, according to the survey. The high ownership in cities like Ahmedabad, Mumbai, Pune etc. in the west is also because 92% of people believe Life Insurance is a necessity for them. This is also reflected in the 80% of people’s willingness to recommend Life Insurance to friends and family as compared to the average of 76% across the country. The mindset of investing wealth was already dominant as 45% of respondents in the west invest in equity and shares, which was the highest amongst all the zones, as per the report.
Need for greater awareness in the south
In the southern belt, 64% attached importance to life insurance as compared to 78% in the north. Among those surveyed, 68% people from Bangalore said Life Insurance provides financial security for old age, while 69% in Hyderabad believe Life Insurance policy is easy to buy. Nearly 58% respondents living in the South believe that Life Insurance will help their families in-case of sudden demise while 57% believe that life insurance will help grow family income in case of illness. Digital payments are widely used in the South with 60% of the total population using one or more digital wallets, reported the survey.
“We conducted this survey to primarily understand the perception, awareness and familiarity about life insurance among the Indian audience. Our aim is to ensure that every earning member of an Indian family makes life insurance as a top priority, to secure a safe and healthy future for his or her family. We understand that care and responsibility go together, and we wish to safeguard this mindset and educate Indians so that we can offer the best life insurance solutions,” stated S. N. Bhattacharya, Secretary General, Life Insurance Council.
Life insurance is a must to ensure that your family enjoys financial support in the event of your untimely demise, besides financing your child’s education, as a source of retirement income or in the event of an accident or illness, and to provide for other financial emergencies. Therefore, invest now so that your family’s ability to meet household expenses and maintain their standard of living remains unaffected in the future.
To know more about life insurance please visit sabsepehlelifeins.com