A recent study conducted by the Insurance Awareness Commission (IAC) reveals that life insurance is the most acknowledged financial product in India, achieving 100% awareness, in contrast to 92% for health insurance and 72% for mutual funds. Interestingly, 57% of those surveyed identified financial security as the primary motivation for having life insurance, followed by ensuring their child’s future (52%) and preparing for retirement (34%).
For non-owners planning to purchase life insurance, the main incentives are financial security (57%), ensuring children’s futures (49%), and preparing for retirement (34%). Additional aspects such as tax advantages, investment opportunities, and claim-settlement rates also affect choices.
Regarding awareness, 58% are familiar with savings plans, but a smaller percentage is aware of term plans (23%) or child/pension plans (26%). These observations indicate the widespread appeal of life insurance and an increasing focus on holistic financial planning among Indian families.
