A recent survey conducted by Canara HSBC Life Insurance has revealed that the primary motivation for purchasing life insurance in India is savings, with family financial security being a close second. The survey, titled “Perfect Plan Ka Partner,” highlighted that while retirement planning and securing children’s futures are important, they often take a backseat for many Indians when it comes to insurance.
Survey Findings: Savings and Security Take Priority
According to the survey, 57% of respondents stated that they bought life insurance policies for savings purposes, while 44% cited family financial security as their primary reason. Other goals, such as retirement planning and securing a child’s future, were mentioned by only 26% of respondents each.
The survey also uncovered a notable gap in policy management, as only 11% of respondents review their insurance coverage on an annual basis. This suggests that a majority of policyholders are uncertain about whether their current coverage would be sufficient in case of an emergency.
Family Security Over Personal Goals
One of the most striking findings of the survey is that 70% of Indians prioritize family security over personal goals such as homeownership or vacations. Around 60% of respondents focus exclusively on family security, often at the expense of other important financial objectives. Additionally, nearly two-thirds (64%) of those surveyed expressed regret about not starting their term insurance plans earlier, and only 25% feel confident that their current policies would cover unexpected costs.
Retirement Planning: A Growing Concern
Retirement planning emerged as a key concern, with 66% of respondents beginning to plan in their 30s. However, 74% of those surveyed expressed regret over not starting earlier, which leaves many feeling unprepared. Only 18% of parents reported feeling fully equipped to secure their children’s future.
Rishi Mathur, Chief Distribution Officer and Chief Marketing Officer at Canara HSBC Life Insurance, commented on the findings: “These results highlight the importance of making timely financial decisions and choosing well-rounded insurance plans to meet both present and future financial goals.”
