Inadequate life insurance cover for majority Indian householdsAbout 94% of indian households will not survive the first year if their household income were to stop.
Apnainsurance.com Research Bureau
11 Feb 2008
A survey of Indian households by the National Council for Applied Economic Research (NCAER) and Max New York Life shows that a whopping 96 per cent of Indian households will be able to survive less than a year if their present household income ceases. The reason for this is that most of the people surveyed are young and earning, not yet given to depending on investment returns, just their incomes. The survey also says that this young workforce focuses primarily on keeping aside money for emergencies, rather than investing for retirement.
This section of the population needs to cover for a contingency where their families can have income protection in case something happens to them. In other words, pure life insurance cover or term insurance cover. This represents a huge market for insurers.