Indians see life insurance as the most handy instrument for planning their major life goals while nearly a third do not have any idea about how much insurance they need, a survey has found. Life insurance is the top instrument for life goals such as building a house (43 per cent), children’s education (38 per cent), retirement (49 per cent) and legacy creation (50 per cent), the survey by Exide Life Insurance said. When it comes to planning for child’s marriage, they look at fixed deposits in addition to life insurance, the survey revealed.
It also finds that 30 per cent respondents admitted that they do not have any idea about how much life insurance cover is required, pointing towards the glaring protection gap among Indians. Around 46 per cent of surveyed feel that they should have a cover of at least 10 times their annual income but only 29 per cent of individuals have such cover, it said.
The digital survey ‘Exide Life Insurance 2018 Money Habits’ covered respondents from 12 cities including metros and emerging tier II cities with an intention to understand how life insurance owners/intenders look at dealing with their money. Through the various subsections of the survey, it is made evident that Indians seldom cover the entirety of financial responsibility.
Survey brings to light that as an income earner of the family, Indians are inclined towards just earning, saving and to an extent investing for life goals, the survey said. Life insurance penetration in India stands at less than 3 per cent in comparison to other developing countries and despite the thrust on financial literacy by government as well as the insurance industry, people still struggle to gauge the level of protection required to themselves and their family, it said.