Indian Life Insurance, Life Assurance India, India Life Ins

By: EconomyWatch   Date: 26 May 2010

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Indian life insurance provides financial security to the family of a policyholder in the event of his/her death. This is the most popular insurance policy, as most people want to ensure that their family members remain financially secure in the event of their death. A policy that is similar to life insurance is life assurance India.

Indian Life Insurance: Growth

The Indian life insurance market is still under-penetrated and far from maturity. In 2008, it constituted approximately 4% of the country’s GDP, as compared to the life insurance penetration rate of around 8%-10% of the GDP in other Asian countries.

More than half of India’s population is between the ages 20 and 60, which is the segment that purchases life insurance. So, the market is large. Moreover, insurance is considered as an important investment tool.

The Indian life insurance industry has been growing steadily since the beginning of this millennium. A research conducted by leading market research information aggregator BharatBook in February 2008 indicated that India was the fifth-largest life insurance market in the emerging economies across the world and was growing at 32%-34% per annum. The research added that the total life insurance premium in India was forecast to grow INR1,230,000 crore ($246,000 million) by 2010-2011.

Indian Life Insurance: Some Important Facts

Indian life insurance is seen as an important long-term investment. When considering various policies, one must keep the following in mind:

  • Life insurance is a must for everyone. Life insurance is a protection for family member and dependents against debt, funeral expenses, financial support and children’s education.
  • Compare the coverage amount and period. This will determine not only the amount one would be eligible for in case of a mishap, but also the insurance premium. One should try to maximize life insurance coverage at the lowest cost.
  • Avoid guaranteed issue life insurance policy if you are healthy. Although this Indian life insurance is the easiest to purchase, as it does not involve a medical examination, it has the highest premium amount.
  • Include more people in the policy. One can save on premium by including two people in the same policy and selecting an annual premium payment plan instead of a monthly one.

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