Top 10 Facts About Life Insurance Policies

Life insurance is an essential component of financial planning in Indian families. It’s like a safety net for you and your loved ones in any unexpected event. It provides financial stability in times of need. But did you know about these 10 facts about life insurance policies in India?

Top 10 facts about life insurance policy

  • Percentage of adults with life insurance

According to the statistics in India, 62% of adults have coverage in the form of life insurance policy. It’s a popular choice among Indian families as it provides financial security and secures the future.

  • Average policy values 

The average life insurance policy in India is approximately 2 lakhs. With this amount, families can cover various expenses like education, mortgage, and daily needs.

  • Term vs. whole life insurance policy 

Term life insurance is in demand in India, constituting around 70% of term policies sold in India. The main benefit of a term life insurance policy is that it provides coverage for a specific time period, catering to the needs of individuals and families. In short, it has dual benefits.

  • Premium payments 

The average premium paid by an Indian policyholder is approximately 12,000 rs. It’s a reasonable and affordable alternative that offers substantial financial security.

  • Gender differences 

There is a noticeable gap between men’s and women’s policy holdings. Men’s policies are valued at Rs 2.5 lakh, compared to Rs 1.5 lakh for women’s policies.

  • Young adults and coverage 

In India, young adults (aged 18-29) are less likely to have life insurance compared to older age groups. Statistics show that only around 40% of them have life insurance coverage. This highlights the importance of increasing awareness about the value of life insurance products among youths.

  • Employer coverage 

Employer’s sponsored life insurance plans are much less popular in India as compared to some other countries. Only 30% of employees have access to these services, which emphasises the importance of individual policy ownership.

  • Life insurance policy by ethnicity 

There are differences in life insurance ownership among different ethnic groups in India. While some communities prioritise life insurance as a financial tool, others are still catching up in terms of awareness and adoption.

  • Financial protection 

The main reason behind purchasing a life insurance policy in India is the advantage of financial protection for your loved ones in any unexpected event. The amount received on the life insurance policy can help you cover education, marriage and healthcare expenses. Around 55% of policyholders buy life insurance policies with this objective.

  • Regional variations 

Life insurance penetration varies across different regions of India. Southern states like Tamil Nadu and Karnataka have higher penetration rates, with over 70% of adults having insurance coverage. In contrast, northeastern states like Nagaland and Manipur have lower rates, around 30%.


In conclusion, life insurance plays a crucial role in the financial landscape of India, providing protection and peace of mind to millions of families. These 10 facts underscore the significance of life insurance policies in ensuring a secure future for loved ones.

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