Indians consider life insurance to be the most useful tool for planning their main life goals, while almost a third have no idea how much insurance they need, according to a survey.
The Exide Life Insurance survey says that life insurance is the main instrument for life goals such as building a home (43%), educating children (38%), retirement (49%) and creating bequests (50%). .
The survey revealed that when it comes to planning a child’s marriage, they look at fixed deposits in addition to life insurance.
It also finds that 30 percent of those surveyed admitted that they have no idea how much life insurance coverage is required, pointing to the evident protection gap among Indians.
About 46 percent of those surveyed think they should have coverage of at least 10 times their annual income, but only 29 percent of people have such coverage, he said.
The digital survey ‘Exide Life Insurance 2018 Money Habits’ covered respondents from 12 cities, including metropolitan areas and Tier II emerging cities, with the intention of understanding how life insurance owners / interns consider how to manage their money.
Through the various subsections of the survey, it becomes apparent that Indians rarely cover the entire financial responsibility. The survey reveals that as a source of family income, Indians are inclined to only earn, save, and to some extent invest in life goals, according to the survey.
Life insurance penetration in India is less than 3 percent compared to other developing countries and, despite financial guidance from the government and the insurance industry, people still struggle to measure the level of protection they need for themselves and their families. He said.