Given Indian’s propensity for anything cheap, it is surprising that the uptake of term life insurance plans is low. But this segment is set to see more growth in the coming years, due to increasing awareness, ease of availability (very easy to buy online) and customer-friendly features such flexibility in premium payment and claims payout.
According to Chinmay Bade, vice-president, products at HDFC Life, India has the highest protection gap in Asia, as growth in savings and life insurance coverage has lagged behind the economic and wage growth. The protection gap has increased over four times in last 15 years, with significantly low insurance penetration and density.
