Life insurance is a crucial investment that can provide financial security to your family in case of any untoward event. However, many people in India do not have life insurance due to various reasons. In this article, we will discuss the top 7 reasons why people don’t buy life insurance in India.
| Reasons | Explanation |
|---|---|
| Unaware of the financial risks | Many people are not aware of the financial risks they are putting their families at by not buying life insurance. In case of an unfortunate event, the entire family will be left without any financial support. |
| They believe they are hale and healthy | People tend to believe that since they are in good health today, nothing will happen to them in the future. However, life can be unpredictable, and one untoward event may leave their family with no financial cushion to fall back on. |
| Lack of knowledge about insurance products | Many people find it overwhelming to understand the various types of life insurance products available in the market. However, having the right knowledge is crucial to get the right insurance plan and secure the financial future of your family. |
| Procrastination | Young people often delay purchasing life insurance, thinking it is not necessary since they don’t have many financial obligations at that stage of their lives. However, insurance premiums are strongly impacted by a person’s age, and delaying the purchase can result in higher premiums. |
| People think insurance is expensive | Many people hesitate to buy life insurance, thinking it is expensive. However, several affordable plans are available in the market. |
| Covered under group life insurance | Many organisations provide their employees with life insurance as part of their group life insurance policy. However, group insurance policies can’t be customised to meet your and your family’s needs, and purchasing personal life insurance is essential to ensure adequate protection for your family. |
| Existing assets | Many people believe that they do not need life insurance as they have existing assets that can be liquidated in case of any emergency. However, having a life insurance payout can help you prepare for difficult times and create wealth over time. |
Now that you are aware of the reasons why people don’t buy life insurance in India, ensure your family is financially protected always by investing in a suitable life insurance policy.
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Article Sources
- MarketWatch. Reasons Why Life Insurance May Not Be Worth It
- Investopedia. Why You Shouldn'T Buy Life Insurance (Ok, Some May ...
- Bankrate. 9 Reasons Why Life Insurance Is A Waste Of Money (2023)
- Progressive. 3 Reasons You Absolutely Should Not Buy Life Insurance ...
- Time Inc.. Is Life Insurance Worth It?