In a world full of uncertainties, all of us want something safe, secure, and tangible to hold on to, especially in adverse conditions when the going can get tough. Planning for your financial future early is the first step you can take to be prepared for all the curveballs that life throws at you. And if the last two years have taught us anything, it is the simple fact that our health and well-being and that of our family and loved ones is the most critical.
At a time when we are perennially living under constant stressors of growth, productivity, and job security, we should not have to worry about the financial stability of our families. Thus, our investment plans must factor in all life stages and financial goals to optimize savings accordingly. Being insured is key to all such stages – whether it is accumulating funds for your child’s education, their marriage, or even their first home. And this sentiment resonates across the country.
Recently, the Life Insurance Council surveyed over 12,000 people across 40 cities to understand the India’s perception towards life insurance. This campaign represents the joint efforts of 24 Indian life insurance companies working towards a common goal of increasing life insurance awareness in the country. Three-fourths of the respondents ranked life insurance as the top three most important securities one must possess in today’s day and age.
The survey findings noted multiple reasons for Indians to invest in a life insurance plan. 70% of those surveyed were willing to buy life insurance. Most of the respondents highlighted the following reasons why they believed it is necessary to purchase life insurance – Protection in an unforeseen event, financial security for the future and achieving collective financial goals of the family. The survey also noted that people had grown more aware of the importance of life insurance in the aftermath of the Covid-19 pandemic. But even as greater strides have been made, more work needs to be done. While 91% of the people consider it a necessity, only 70% are willing to invest in the same.
People in South India appear to be relatively less interested in the idea of life insurance. 64% of the respondents surveyed across cities in South India believed life insurance is important as compared to 78% in the North. The reason for this could be the higher weightage given to other financial instruments such as post-office savings schemes. The survey also noted how people in the South recorded a lower level of ownership of life insurance as well compared to health insurance or post office (PO) savings scheme where the ownership was higher in comparison to other regions. The mediums to purchase the same also differed across regions. Digital payments are widely used in the South with 60% of the total population using one or more digital wallets.
On the other side, the survey findings in the Western region noted that a large group of young adults and millennials were not only aware of life insurance but also willing to invest in it. The investor mindset was already prevalent as 45% respondents invested in equity and shares, highest amongst all the zones. The region has also shown relatively high ownership of life insurance. In cities like Ahmedabad, Mumbai, Pune etc., 92% of people believed insurance to be a necessity. This is also reflected in willingness as 80% of respondents reacted positively to recommending insurance to friends and family as compared to the national average 76%. Recommendations play a vital role in the decision-making process for any investment, especially something as long-term as Life Insurance.
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