Dailymirror.news,Pune, 26 March 2025: Bajaj Allianz Life Insurance, a leading private life insurer in India, has unveiled its latest ‘Underinsurance Survey 2025’, conducted in collaboration with NielsenIQ. Covering 2,000 individuals across metro, tier 1, and tier 2 cities, the study assesses life insurance coverage levels and highlights critical financial protection gaps.

Key Findings:

• Underestimation of Coverage Needs: 81% of respondents believed that life insurance coverage below 10 times their annual income was adequate. However, the actual coverage averages were much lower—just 3.1 times annual income in urban areas, and even lower among Mass Affluent and Affluent families.
• Declining Age of First-Time Buyers: The average age of first-time policyholders has dropped from 33 years to 28 years, indicating a positive shift in financial awareness.
• Lack of Coverage Reviews: Over one-third of respondents have never reassessed their life insurance coverage, even after major life events such as marriage, childbirth, or career growth. This rises to 43% among self-employed and affluent individuals, making them particularly vulnerable to financial risks.
• Perception vs. Reality: While Indians perceive their coverage to be 6.4 times their income, the reality is much lower, reinforcing the urgent need for better financial planning.
• Key Coverage Drivers: Family responsibilities, increasing income, and health concerns are the top three reasons influencing life insurance decisions.

Speaking about the survey, Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance, highlighted India’s growing economy but noted a concerning gap in life coverage.

“Despite India being one of the world’s fastest-growing economies, the total sum assured stands at just 70% of GDP, significantly lower than countries like the US (251%), Thailand (143%), and Malaysia (153%). This leaves many families financially vulnerable in crises, often forcing them to exhaust savings or liquidate assets.

To truly secure their loved ones, individuals must adopt a holistic approach-factoring in income, liabilities, and future aspirations. A simple rule is to have coverage at least 10 times one’s annual income for adequate financial security.”

He further emphasized the need for industry-wide efforts to increase awareness, enhance product transparency, and improve accessibility through digital solutions.

చెరువుల అభివృద్ధి పనులను పరిశీలించిన హైడ్రా కమిషనర్..

కొత్తకుంట చెరువు పరిస్థితిని పరిశీలించిన హైడ్రా కమిషనర్

While more Indians are recognizing the importance of life insurance, misconceptions about required coverage persist, leaving many underinsured. The survey reinforces the importance of regular policy reviews and making insurance a core part of financial planning.

Bajaj Allianz Life remains committed to simplifying life insurance, ensuring that individuals choose the right coverage based on their income, liabilities, and family needs. With IRDAI’s vision of ‘Insurance for All by 2047’, greater awareness and accessibility will play a key role in bridging the underinsurance gap in India.