Mumbai, Feb 21 (UNI) Despite the fact that there was high awareness among the people living in the country, still there is a low level of ownership of life insurance, says the finding of 'Max New York Life-NCAER-India Financial Protection Survey.
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, says the survey. Moreover, the survey points out that Indian households are financially at risk due to inefficient saving habits and misplaced financial optimism.
Releasing the findings before the media here today, CEO of Max New York Life, 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''. Hence he suggested for the life insurance industry to educate Indian households about their risk profile, through sound quality advice and the right mix of product offerings.
Commenting on the findings of the survey, Director General of NCAER, 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 added.
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
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, says the survey. Moreover, the survey points out that Indian households are financially at risk due to inefficient saving habits and misplaced financial optimism.
Releasing the findings before the media here today, CEO of Max New York Life, 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''. Hence he suggested for the life insurance industry to educate Indian households about their risk profile, through sound quality advice and the right mix of product offerings.
Commenting on the findings of the survey, Director General of NCAER, 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 added.
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
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