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Often people buy life insurance policies but do not renew their policies later. A report released by PolicyBazaar, an online insurance broker solves this puzzle.
The report reveals that many people do not renew their life insurance policies as they find the premium too expensive.
Another major reason for not renewing life insurance policies is the not so good performance of life insurance products in terms of investment. Many people shift their money to other products like mutual funds, which offers attractive investment returns, finds the report.
Among other key reasons are having sufficient savings, no liabilities and inadequate coverage amount.
Let us look the table to find top reasons for not renewing insurance policy:
|
Top reasons for not renewing life insurance policy |
Percentage |
|
Could not afford premium |
44% |
|
Invest in options that gives returns |
36% |
|
Have sufficient savings |
27% |
|
Don’t have any liabilities |
27% |
|
Coverage was not adequate |
27% |
|
Premium was high for the coverage |
26% |
The report also highlights top reasons why people do not buy life insurance policies. It says that many people do not buy life insurance as they find it difficult to understand it.
Another top reason is affordability. 40% people find life insurance premium to be very expensive.
Among other key reasons for not buying an insurance policy are not having sufficient funds and no urgent need.
This table lists top reasons for not buying an insurance policy:
|
Reasons for not purchasing life insurance policy |
Percentage |
|
Lack of understanding |
57% |
|
Premiums were high |
40% |
|
Didn’t have sufficient funds |
34% |
|
No urgency |
31% |
|
It seemed like too much hassle |
28% |
|
Not sure of claims being paid |
26% |
|
Too many options - made it confusing |
26% |
|
Didn’t understand how life insurance works |
25% |
|
Policy not issued due to pre-existing condition |
21% |
|
Thought to invest in something that offers higher returns |
21% |
|
I would not get the benefit during my life time |
20% |
|
Realized that have sufficient savings |
19% |
