SBI Life Insurance finds big gap in Indians’ financial preparedness

A study by SBI Life Insurance, conducted in collaboration with Deloitte, highlights a concerning gap in the financial preparedness of Indian consumers.

The Financial Immunity Study 3.0, titled ‘Demystifying the Consumer’s Illusions,’ surveyed 5,000 respondents across 41 cities in India and uncovered critical insights.

Some of the key findings of this study are that 71 per cent of uninsured respondents recognise the absolute necessity of insurance for achieving ‘financial immunity’.

As many as 83 per cent of insured individuals acknowledge the critical role of insurance in attaining financial resilience.

Despite 68 per cent believing they are adequately insured, only 6 per cent have sufficient coverage.

Shockingly, 47 per cent of insured individuals surrendered their life insurance policies in the last five years.

Mahesh Kumar Sharma, MD & CEO of SBI Life Insurance, emphasised the urgent need for a paradigm shift in how financial preparedness is perceived. “It’s a matter of great concern that 80 per cent of consumers acknowledge insurance’s pivotal role in financial security, yet a staggering 94 per cent remain inadequately covered,” he said.

“The study is more than just a report; it’s a call to action”. Sharma said every individual deserves the opportunity to build resilience against life’s uncertainties. Together, we can bridge the gap between perception and reality, and truly empower individuals to achieve ‘financial immunity’.”

He emphasised the stark contrast between perception and reality and called for empowering individuals to achieve true ‘financial immunity.’

SBI Life Insurance aims to demystify financial illusions and equip individuals with knowledge and solutions to fortify their financial foundations. This initiative seeks to bridge the gap between perception and reality, ensuring financial security in an uncertain world.

Amidst a world reshaped by unforeseen challenges, the study unveils a stark reality that the Indian consumer’s perception of financial preparedness is often clouded by illusions that could have dire consequences leading them or their family members to have inadequate financial protection amidst life uncertainty.