India’s Hidden Risk: The Alarming Number Without Life Insurance

Nearly 50% of Indians still do not have a life insurance policy. That’s not just a number—it shows how unprepared many families are for emergencies. While more people are slowly learning about the benefits of a term insurance policy, there is still a big gap in understanding and action. This post explains why so many people do not prefer to buy life insurance and what it means for them and their families.

What is Life Insurance?

Life insurance is a simple financial tool. If something happens to the person who has the policy, the family gets a fixed amount of money. This helps them pay for things like school fees, house rent, or daily expenses. The goal is to make sure the family can live without financial trouble, even when their loved one is no longer there to support them.

What is a Term Insurance Policy?

A term insurance policy is a type of life insurance. It gives protection for a fixed time, like 10 or 20 years. If the person passes away during that time, the family receives the money. If nothing happens during the policy term, then the policy simply ends. It is easy to understand and often costs less than other insurance types.

Why Is Life Insurance Important?

Life is full of surprises. No one can predict what will happen next. That’s why life insurance is important. It helps families when they lose the person who earns money for the household. Here’s why more people should prefer to buy a life insurance plan:

• To take care of children’s education
• To help the family pay loans
• To manage daily expenses in difficult times
• To avoid selling assets like gold or land during emergencies

The Surprising Truth: 50% Don’t Have It

Recent reports show that 50% of Indians still don’t have life insurance. That means one out of every two people is not protected. Many of them are not even aware of what a term insurance policy is. Even though such policies are affordable and simple to understand, people either delay or ignore buying them.

Why Are People Not Buying Life Insurance?

Here are some common reasons:

• Lack of Awareness: Many people don’t know how life insurance works.
• Myths: Some believe that they are too young or too healthy to need it.
• Trust Issues: Some think that insurance companies don’t pay the money.
• Financial Pressure: People think they can’t afford it, even though some plans start at very low prices.
• Thinking It’s Not Needed: Some feel their savings are enough.
   

Underestimating Family Needs

In many homes, people do not think deeply about what their family will need in the future. If the earning member is not there, the family still needs money for:

• School and college fees
• Medical care
• Marriage expenses
• House rent or loan EMIs 

According to experts, a term insurance policy should cover at least 15–20 times the yearly income. But most people don’t calculate it this way. This can lead to big problems later.

What People Plan Instead

Instead of buying a simple life insurance plan, many families believe they will:

• Sell their house or gold
• Borrow money from relatives
• Use their savings

But these are not reliable plans. Selling property takes time. Borrowing may not always be possible. Savings may not be enough. Insurance gives a clear, fixed support amount—without delays or conditions.

Why Term Insurance is a Smart Choice

Here’s why a term insurance policy makes sense:

• It is simple to understand
• The premium is low for large cover
• The claim process is easy and fast
• It can protect the family for many years

Young people, especially, can prefer to buy a term insurance policy at a very low cost. The earlier they buy, the lower the cost.

Health Coverage is Still Ahead

Interestingly, more people in India prefer health insurance over life insurance. Around 28% of people now see health insurance as a top financial product. But even here, most of them choose small covers—usually Rs. 5 or 10 lakh—when many treatments now cost much more.

This shows a bigger pattern: People are still not aware of the real costs of emergencies and long-term care.

What Needs to Change?

To close the awareness gap, we need:

• Simple Communication: Explain life insurance in easy words
• More Campaigns: Teach people the importance of financial safety
• Better Tools: Use calculators to show how much cover a person needs
• Clear Benefits: Show real-life examples of families helped by insurance 

Don’t Wait for a Crisis

Sadly, many people only think of buying insurance after a health issue or personal loss. But insurance works best when you get it before something goes wrong. That way, you’re always prepared.

A term insurance policy offers peace of mind. It helps a person live without worry, knowing that their family will be protected.

Today, many people in India are still not ready for sudden changes in life. The fact that 50% of Indians still don’t have life insurance shows how urgent the problem is. Families continue to rely on old habits like selling property or borrowing money. But that may not always work. A term insurance policy gives a simple and safe option. It can protect a family from big financial problems during hard times. By knowing more and acting early, people can avoid stress and ensure their loved ones are safe. Life insurance is not just a product—it is a way to secure your family's future.

Note to readers: This article is part of HT's paid consumer connect initiative and is independently created by the brand. HT assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.

Want to get your story featured as above? click here!