There has been a significant increase in the number of life insurance buyers in the recent years, which means that the insurance industry in the country is growing day by day. But, some percentage of people in India are still hesitant to buy a life insurance policy because they are either unaware of the value of life insurance or think it is an expensive investment. Continue reading to understand the top reasons why Indians do not buy life insurance plans in India.
Common Reasons Why People don’t Buy Life Insurance in India
Below mentioned are some common of the common factors why people do not buy life insurance in India:
Lack of Understanding
Life insurance companies in India offer a variety of life insurance plans based on the needs of the consumer to meet the needs of everyone. Since there are so many options available, it can be challenging for customers to choose the best life insurance plan as per their needs. There are some life plans that protect you from future emergencies, and there are some life insurance plans like ULIPs that offer dual benefits of protein and investment in a single life plan. Hence, there are various life insurance options available, people are not aware of every types of life insurance plans in India.
Neglect or Procrastinate
Life insurance is not required by law in India. Also, there is no law specifying the minimum age to buy life insurance. People feel that they do not need life insurance as long as they are in good health and do not have any diseases, so they do not prefer life insurance. But according to studies, four out of ten Indian families may find it difficult to meet their living expenses if they lose a single earning family member. After purchasing life insurance, you can provide financial support to your family in case of any untimely or unexpected death of the breadwinner of the family.
Misconception Over Expenses
People in India often avoid buying life insurance plans because they think it is expensive and treat it as an added expense. But in reality, it is affordable and easy to buy as per one's requirement. Moreover, you can buy various types of life insurance plans at just less than INR 1K per month.
Unaware of the Financial Risks
The majority of Indians will say they don't need life insurance since "nothing bad will happen to me." Moreover, a section of the Indian population knows little to nothing about the financial risks associated with not having a life insurance policy in case of an emergency. Infact, life insurance can be a saviour for you and your family in any unplanned emergencies as it provides you the financial support in case of the sudden demise of the single earning member of the family.
Many people in India delay buying life insurance because they believe they are young, healthy and do not need life insurance. But it is important to bust the myth, and you should know that the best time to buy life insurance is when you are young and in good shape. Buying a life insurance policy at an early age allows you to get insured at a lower premium cost, But, it may cost you more if you trying to buy life insurance in old age. The reason behind this increment in premium amount is age, annual income, lifestyle habits of an applicant, etc.
Bad Word of Mouth About Insurance Companies
As we all know that there are many life insurance companies in India that offer various life insurance policies. If the customers heard anything bad about the insurance companies then it becomes very difficult for any customer to trust any of these life insurance companies. Generally people think that they will not get the claim amount from life insurance companies at the time of need. But, this is not true, every year life insurance companies settle hundreds and thousands of claims worth crores of rupees. Any claim rejects only when there is any misrepresentation or in case of a fraud.
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I have a lot of assets, why would I need Life Insurance?
Many of us believe that it is acceptable to leave behind only assets, such as a business, and expect that family members will mortgage or sell them for a living in case of a loss of stable income. India is full of youth between 25-35 years who like to spend on travel and luxuries, but very few people think of saving their families from financial hardships in case of early death. Indian youth do not even consider buying a life insurance policy as they do not think about future emergencies.
The primary use of a life insurance policy is to leave family members with a backup plan in case of any eventuality. With a life insurance policy in place, you can say good-bye to these troubles and ensure a secure future for your family. It is time to stop making excuses and buy life insurance for your family’s safety.
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Other Important Links to Know More About Life Insurance
1. Why are people not buying life insurance?
Most of us think life insurance is expensive and not worth the premiums, and it adds to the cost of living, which people do not like. However, life insurance is not expensive if you buy it when young.
2. Is life insurance a good investment?
Whether or not life insurance is a good investment for you is determined by your finances and the length of time you will require coverage.
3. Is it important to have life insurance?
Life insurance policies pay out a set amount of money if the life insured dies or becomes disabled due to an accident during the policy's term. Having a life insurance plan is essential.
4. What are the three benefits of life insurance?
There are many reasons to buy life insurance. Here are three main benefits:
- Financial Security
- Tax Benefits
- Secure your Child’s future