High awareness, but low ownership of life insurance: Survey

Mumbai, Feb 21 (UNI) Despite a high level of awareness, there is a low level of ownership of life insurance among the people, a joint Max New York Life-NCAER-India Financial Protection survey has found.

While 78 per cent of the people surveyed are aware of the life insurance policies, only one-fourth of the Indian households own a life insurance policy, the survey has found. Moreover, the survey report says the Indian households are financially at risk inefficient saving habits and misplaced financial optimism.

Releasing the findings to the media here today, Max New York Life CEO Gary Benett said, ''There is a lack of understanding about the real benefits of life insurance towards both financial protection and long-term wealth creation.'' He advised the life insurance industry to educate the Indian households about their risk profile, through sound quality advice and the right mix of product offerings.

Commenting on the findings of the survey, NCAER director general Suman Bery said, ''The results broadly confirm the fact that Indian households are in the habit of saving and also that they are fundamentally optimistic about their financial future. However, for almost a quarter of households across the income spectrum, current income is insufficient for their routine and unusual expenditure.'' He hoped that the results of the survey will assist the government and industry to develop more focused campaigns to provide lasting financial security for Indian households. Also, he outlined the need for financial literacy to educate the people the benefits of life insurance policies.

Talking about the methodology of the survey, senior fellow and project leader, NCAER, Dr Rajesh Shukla said, ''The key objective was to evaluate the financial risk profile of Indian households by assessing how they earn, spend and save and to understand the significance and potential of life insurance in particular as a risk-mitigating tool for Indian households.'' UNI KKD MAZ AG1724