Personal finance

61% parents in Delhi believe Life Insurance assists in their child’s education & marriage expenses- Life Insurance Council survey

Life Insurance council 1

KEY HIGHLIGHTS

  • Almost 3/4th of the respondents ranked Life Insurance among the top three most important financial instruments, followed by a Savings Bank Account
  • 44% people believe that life insurance helps to grow your money while keeping it safe
  • The importance of Life insurance as an instrument largely remained the same across age groups and among both males and females

Delhi:

Life Insurance Council

(

LIC

) recently conducted a survey across 40 cities with more than twelve thousand people to understand the Indian audience’s perception towards

life insurance

. This survey is aligned with LIC’s new public awareness campaign “Sabse Pehle Life Insurance” which positions life insurance as a top priority for the earning members of the family.

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, which is one of the most under-insured populations in the world.

The survey findings indicated high awareness, and that people of all age groups across India consider life insurance as an important financial instrument. 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.

Of the total respondents, 70% were willing to buy life insurance. In fact, due to the Covid-19 pandemic, a significant increase has been witnessed among people opting for life insurance. However, there is still a gap and a need to raise awareness about the importance of purchasing life insurance. While 91% of the people consider it a necessity, only 70% are willing to invest in the same.

The northern zone of India showed high awareness in the awareness of life insurance with 98% of respondents confirming that they were aware of what life insurance was. The northern states also ranked highest for life insurance’s necessity to the common man as 94% people said that they believed life insurance was necessary. This was replicated in the likelihood to buy life insurance as well with 70% of respondents confirming that they might or will buy life insurance for themselves or their families.

One of the interesting outputs from cities like Delhi is the inclination towards insurance agents/ advisors. 52% of people have relied on an agent to purchase Life Insurance as compared to 48% across the country. Additionally, Delhi also has 80% people using one or more social media channel which gives them a chance to obtain updated information on the latest on-goings in the industry.

“We conducted this survey to primarily understand the perception, awareness and familiarity about life insurance among 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” said Mr. SN Bhattacharya, Secretary-General, Life Insurance Council.

Additionally, several interesting trends emerged from the findings indicating how people are much more aware about the importance 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 group 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 and knows a lot about it

The survey also revealed that Life Insurance investment has a perception of being long-term in nature as well as expensive – these are the top two barriers for adoption. The Life Insurance Council with this survey and its “Sabse Pehle Life Insurance” campaign aims to not only to educate towards the importance of life insurance but also to eradicate malpractices that misguide people about the category and products. It is critical that people perceive life insurance in the right light for a safer, better future for themselves and their families.

About the Survey

* The report was commissioned in partnership with Hansa Research

* The sample size included audiences between the ages of 25-55 years

* The cities were divided amongst 8 metro cities, 9 tier-one cities and 23 tier two cities

* The study surveyed over 12000 respondents

About Life Insurance Council

“The Life Insurance Council is constituted under Sec.64C of Insurance Act 1938, is the face of the

Life Insurance Industry

that connects the various stakeholders of the industry. It functions together with the participation of all the

Life Insurers

through several sub-committees towards the development of the industry. The Life Insurance Council leads the advocacy effort on the industry’s behalf before the Regulator (IRDAI), Govt of India and all other statutory bodies.”

The survey findings indicated high awareness, and that people of all age groups across India consider life insurance as an important financial instrument. 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.

Source: https://www.timesnownews.com/business-economy/personal-finance/61-parents-in-delhi-believe-life-insurance-assists-in-their-childs-education-marriage-expenses-life-insurance-council-survey-article-90462385

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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