Almost half of India nonetheless ignores time period insurance coverage: Survey

It is extremely vital to make sure that your family members are nicely protected, and time period insurance coverage is without doubt one of the methods to take action. Time period insurance coverage plan is the best solution to safe the way forward for your loved ones because it affords excessive protection at inexpensive premiums. Regardless of this differentiating issue, practically half of India nonetheless ignores time period insurance coverage. In accordance with a current survey, 47.6 per cent of India will not be even conscious of time period insurance coverage and its advantages. Nonetheless, the survey stated that there are sings of enchancment.

“The attention hole stays one of many greatest limitations to time period insurance coverage adoption in India. The survey discovered that 47.6 per cent of Indians are unaware of time period insurance coverage and its advantages. Nonetheless, there are indicators of enchancment,” Policybazaar stated in its newest survey titled ‘How India Buys Insurance coverage 2.0’.

Consequently, industry-wide, time period insurance coverage grew by 18 per cent in FY24, in comparison with a CAGR of simply 2 per cent over the previous 5 years. 

“This yr’s report places a highlight on the attention hole much more evidently than earlier than. A big proportion of customers plan to promote ancestral belongings or borrow cash throughout a disaster moderately than decide for easy, accessible options like well being and life insurance coverage to guard their households,” Sarbvir Singh, Joint Group CEO, PB Fintech.

The survey, which is predicated on a survey of three,955 respondents throughout 27 metros, Tier-2, and Tier-3 cities in India, discovered that 56 per cent of respondents who’re conscious of time period insurance coverage have a optimistic perspective towards buying it.

The report uncovers a number of key insights, together with the truth that Indians proceed to severely underestimate healthcare prices—practically 48 per cent of policyholders go for protection of Rs 5 lakh or much less.  

Key Findings of The Survey

• Indians proceed to favour conventional monetary investments resembling gold, fastened deposits, insurance-linked financial savings schemes, and actual property. In accordance with the survey, 28.3 per cent of respondents ranked medical health insurance above equities, mutual funds, and authorities bonds.
• A staggering 75 per cent of medical health insurance patrons in India have protection of Rs 10 lakh or much less. Non-buyers additionally show a extreme underestimation of medical prices. 
• 87 per cent of time period insurance coverage non-buyers critically underestimate their household’s monetary wants.