State of insurance coverage in India
Insurance in India has a deep rooted history, it is almost a 200 year industry which has failed to gain substantial investments from consumers across the country. In a recent survey conducted by the Market Research firm Kantar IMRB, the India Protection Quotient Stands at 35, a puny number. This number indicates the degree to which an individual feels protected from unfortunate events that may or may not occur in one’s life. Thus the level of protection for such circumstances is extremely low.
While the need for a life insurance plan is advocated time and again to individuals very few have actually adopted it. Millenials have amongst the lowest protection covers at the same time one of the highest spendings on travel and luxury. Only 17% of the 4,566 individuals surveyed had life coverage. This shows that Indian’s are grossly underinsured. Such an abysmal figure must serve as an impetus to many of us to take up life coverage. On the other hand, many feel that the same money invested elsewhere will yield higher returns. Taking inflation into account, most Fixed Deposit or Savings interest rates will not be sufficient to cover the medical or financial costs 7 to 10 years from now. According to a report by IndiaSpend, an average Indian has only 8% of the total requirement to secure their family from any unforeseen financial exigency.
Financial security for your loved ones
Having a life insurance policy is not only beneficial, it is among the most essential things that one must invest in. Priya Kaur, a 30 year old IT professional has understood this the hard way. Her husband of over 5 years got into an accident while returning home from work and expired just a few weeks later. With the emotional loss, Priya was burdened with a host of liabilities - rent, EMIs, hospital bills, etc. She did not have the emotional capacity to get back to work so soon after the tragic loss of a loved one. She and her daughter had to move out of the apartment soon after. This is when she decided to opt for a life insurance policy for herself as well as her dependents to secure them financially. While not everyone recognises the need for a life insurance plan, such events in life do highlight the need to opt for one. It is always better to be safe than sorry, especially if you are the only earning member of the family.
Cost of life insurance
If you’re still young, you have the liberty to pay lower premiums on your life insurance policy. Term plans are among the cheapest options available which provide death benefit in case of the death of the insured within the term period. A life insurance plan in India comes at a cost of just Rs. 12 per day, to secure a lifetime of any financial losses that may come your way. With the iSelect Star Term Plan from Canara HSBC Oriental Bank of Commerce Life Insurance you have the option to get a 100% return on your premium, provision of a full life coverage (upto 99 years) as well as a cover for terminal illness. Thus, it is a very small price to pay for securing the life of yourself and your loved ones.
Benefits of a life insurance policy
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