Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

Life Insurance Penetration in India And How Does It Compare Globally here on this article. Visit Kotak Life to know more on Life Insurance

  • Mar 15, 2021
  • 5,065 Views

Life insurance comes with many advantages. It offers different products types, such as term insurance, whole life insurance, unit-linked investment insurance, retirement based life annuity and endowment insurance, and more. There is a plan for every income group and budget, and the risk involved is quite low. However, despite these benefits, life penetration in the country has been rather low. This article talks about life penetration in India and how it compares to other countries.

What is life insurance penetration?

Life insurance penetration is a parameter to determine the ratio of premiums from life insurance plans to the gross domestic product (GDP) of the country. High life insurance penetration indicates the development of the insurance sector and reflects on the popularity of insurance products among the citizens.

What is the life insurance penetration ratio in India?

Unfortunately, life insurance penetration figures in India are quite low. If you consider the rate of insurance penetration in the country from the early 2000s, you will notice an increase. Life insurance penetration was recorded at 2.15% in 2001, which had substantially risen to 4.60% in 2009. However, after 2014, there has been a disappointing trend in the country. Insurance penetration in 2015 was recorded at only 2.72%. This marginally increased in 2017 with 2.76%. The financial year 2018-19 showed an upward graph with numbers reaching 3.70%. However, the overall picture still seems bleak.

What does global insurance penetration compare to India?

As per a report, the global penetration in 2019 was the highest at 19.97% in Taiwan. This was closely followed by Hong Kong that stood at 19.74%. The United States of America reported an insurance penetration rate of 11.43% while the United Kingdom stood at 10.3%. India’s neighbour, China, also recorded a higher life penetration at 4.3%. The world average was reported at 7.23%. These numbers are a lot higher than India’s insurance penetration.

Why is life insurance penetration in India so low?

Reasons that contribute to low insurance penetration numbers in the country:

1. Illiteracy:

A significant number of India’s population is not educated. As a result, a low financial acumen is a prime cause of low insurance purchases in the country. People still do not know about the benefits of insurance plans and how the different types of insurance policies can offer them relief in the case of financial emergencies.

2. Limited customer base:

Many insurance companies follow an agent-based model. The insurance agent finds clients, sells them an insurance policy, and in return earns a commission on every sale. This has led agents to pursue only a limited group of upper-middle-class or high-class Indians, completely ignoring other income groups, who in reality form the majority of the population.

3. Unstable economy:

With increasing unemployment, political unrest, and a widening gap between the rich and the poor, people have less disposable income in hand. This leaves them with very little to invest. The pandemic also added to people’s insecurities. In such circumstances, people are more occupied with sustaining in the present and have little interest and resources to safeguard their future financial needs.

What can be done to increase the insurance penetration rate?

An increased level of knowledge can encourage people to buy insurance. Many insurers like kotak life are now offering their plans online without the interference of agents. Insurance companies also post myth-busting blogs with accurate information on insurance products. This can enable people to compare different insurance products, check the claim settlement ratio of the insurer, and pick a suitable product without hassles.

Kotak e-Term

Download Brochure

Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

In India, should NRIs purchase life insurance?

6 Different Types of Insurance Policies

Is It Time to Review Life Insurance Policy of Yours?

A Term Insurance Guide for Disabled People

How Much Life Insurance Costs and How Much Insurance Cover You Need?

Life Insurance Plans for Women

Why Your Family Should Know About Your Life Insurance Policy?

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

5 Benefits of Gifting Life Insurance Cover to Your Spouse

Can a Term Plan be the Substitute for a Retirement Plan?

वरिष्ठ नागरिकों के लिए ऑनलाइन टर्म इंश्योरेंस प्लान खरीदने के लिए गाइड

What Happens If I Stop Paying My Life Insurance Premium?

Is Life Insurance an Investment?

How Do Term Insurance Plans Differ for Smokers?

How Often You Must Review Your Life Insurance Policy?

Why Term Insurance for Women is Important?

All About Backdating in Life Insurance

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

Life Insurance for Millennials

All You Need to Know About KYC

Life Insurance with Money Back vs Without Money Back

Compare Different Life Insurance Products Offered By Kotak Life

Why Online Term Insurance Plans Cheap?

Do Your Financial Planning with Life Insurance!

Insurance Vs Investment - A Guide to Your Financial Goals

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

Life Insurance Policy Closure

First Job? Here’s Some Tips on How to Manage Finances

Think About Life Insurance Sooner than Later

Process of Filing A Claim For Life Insurance

बीमा क्षेत्र में IRDAI की भूमिका

How to Customize Your Life Insurance Policy with Riders

Does Life Insurance Cover Terminal Illness?

What is Insurance Coverage? Overview, Types, and Examples

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

Is Voluntary Life Insurance the Same as Basic Life Insurance?

Life Insurance and Millennials

Role of IRDAI in the Insurance Sector

How to Use Different Types of Life Insurance for Retirement Planning?

5 Common Life Insurance FAQs and Answers

जीवन बीमा पर ऋण

NRI Premium Payment Options

Why Buying a Term Insurance is Important for all Parents

Life Insurance Beneficiary

How to Make Death Claims on Life Insurance?

Staying Insured While Investing

What is Minimum Life Insurance Policy?

All about Life Insurance Calculators

What Should One Expect During the Medical Evaluation for Life Insurance?

What is Group Insurance?

Important Terminologies of Life Insurance

How To Choose The Right Life Insurance

How to Buy a Life Insurance Plan?

How to Choose a Life Insurance Policy

Details Required To Be Filled In A Life Insurance Form

Health Insurance VS Life Insurance

Choosing a Life Insurance Beneficiary

Why Do Life Insurance Agents Avoid Selling Term Plans?

Does Life Insurance Policy Cover Covid Death?

Can You Transfer Life Insurance Policies to Another Company in India?

What Is Insurance Rider and It’s Benefits?

Role of Life Insurance in Your Financial Portfolio

भारत में जीवन बीमा पॉलिसियों के प्रकार

Take 100% Responsibility of Your Family with Term Life Insurance

Voluntary Life Insurance Policy Vs Group Life Insurance

6 Things You May Not Know about Life Insurance

Terms and Conditions of Term Insurance Plans

How to Calculate Human Life Value(HLV)?

Why Should You Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

Why Life Insurance Is Always a Smart Decision

Choose the Nominee of a Term Life Insurance Plan Wisely

5 Smart Steps to keep in mind while buying term policies

Benefits of Term Insurance with Critical Illness Rider

Best Insurance Plans in India

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

What is a Single Premium Term Plan and its Tax Benefit?

Choosing Between Short-Term & Long-Term Insurance Plans

What happens to joint life insurance after divorce?

Types of Insurance You Must Invest in for Secure Future

Life Insurance Nominees: 5 Must-Know Facts for Beneficiaries

5 Things to Keep in Mind While Buying Life Insurance Policy

5 Reasons Why a Women Should Buy a Life Insurance

Adding A Child to Your Life Insurance Policy?

All about Your Rights and Duties While Buying Life Insurance Policy

What are the Benefits of Endowment Policy?

Why You Should Never Cancel Life Insurance Policy

FAQs on Life Insurance

5 Advantages of Life Insurance Going Digital

“Life” Insurance or “Death” Insurance?

Various Term Insurance Premium Payment Options Available in India

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

What is the Current Trend in Term Insurance?

How to Find the Best Term Insurance Plan in Seven Steps

Why Renewal of Term Insurance Plan is Important

How Much Life Insurance Cover Do I Need?

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

What Is Investment Insurance?

Term Life Insurance vs Accidental Death Insurance

All About Life Insurance and How It Works?

Different Types Of Life Insurance In India

When Should You Review Term Life Insurance of Yours?

Reasons Why Term Insurance Claims Get Rejected

5 Reasons Why You Need Life Insurance in College

Life Insurance vs Mutual Funds

Term Insurance Tips for NRIs in India

What Is a Whole Life Insurance Plan?

Term Plan with Return of Premium (TROP)

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

Key Things to Review in Your Life Insurance Policy Document

What is Sum Assured in Endowment Policy?

When are Millennials required to take out a life insurance policy?

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

Life Insurance for Overweight Applicants

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

What is Underinsurance & The Dangers of Being Underinsured

Top 5 Common Life Insurance Myths and Facts

How to Buy a Term Life Insurance Online

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Kotak Life Claim Settlement Ratio

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

Is It Advisable To Have Multiple Life Insurance Policies?

Does Family History Affects your Term Life Insurance Rates?

Difference Between Money Back and Endowment Policy

Different Types of Insurance Policies in India

Is it Worth Buying Disability Rider on Term Insurance?

Sabse Pehle Life Insurance

What are robo-advisors in insurance?

Types of Life Insurance Or One Investment, Many Options

Digital Life Certificate for Pensioners Seeking Pension

What Is Staggered Payment Option Under Term Insurance Policy?

Can An Individual Buy Multiple Term Insurance Plans?

क्या जीवन बीमा एक निवेश है?

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

Term Insurance Claim Process

Guidelines for Linking Aadhar and PAN to Insurance Policies

Life Insurance Vs. Mutual Funds Investment

Why do I Need Life Insurance?

How to Choose the Right Life Insurance Policy for Your Age?

What is Human Life value and a Human Life Value Calculator?

How do life insurance payouts work?

Can NRI Buy Life Insurance in India?

Why is Medical Test Important While Buying a Term Insurance?

Nominee in insurance - A Complete Guide on nomination in insurance

Most Common Life Insurance Riders to Enhance Your Existing Policy

जीवन बीमा क्या है?

What is Life Insurance?

5 Easy Steps to Buying A Policy

Is Life Insurance For Millennials Really Needed?

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

What Is the Procedure to choose a nomination in life insurance policy?

Beware of Phishing & Fraud Insurance Calls

Do Life Insurance Premiums Increase Every Year?

Term Insurance Vs Life insurance: Small Details, Big Differences

Important Life Insurance Terms You Must Know

Life Insurance for Overweight Applicants

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

Why do most Indians choose the wrong way to buy life insurance?

Why One Must Buy Term Insurance before 25 Years

Does Life Insurance Pay for Suicidal Death?

Health Insurance VS Life Insurance

9 Most Important Things You Must Learn About Paying Life Insurance Premium

How Much Life Insurance Do You Need?

Biggest Life Insurance Myths

What is the Difference Between Limited and Regular Pay Insurance Plan?

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Guide for Buying Online Term Insurance Plans for Senior Citizens

How Does Life Insurance Work?

How to Choose Life Insurance for All Ages?

5 Ways to ensure faster settlement of claims

Important Features of a Term Insurance Plan

Life Insurance and Retirement Planning

How to Revive the Lapsed Life Insurance Policy?

Should You Buy Life Insurance After Getting Married?

All about IRDAI

What is the Difference Between Insurance and Reinsurance?

Loan Against Life Insurance Policy

How Many Insurances Should I Have?

Types of Life Insurance Policies in India

Always keep your Nominee informed

Who Is A Nominee In A Life Insurance Plan?

What Is Social Impact Investing and How Does It Benefit Society?

Difference Between Insurance and Assurance?

क्रिटिकल इलनेस राइडर के साथ टर्म इंश्योरेंस के लाभ

7 Superficial Reasons People Avoid Buying Insurance Online

Insurance Changes You Need to Make Post Marriage

Customer Awareness on Information Security

8 Things to Consider Before You Buy Life Insurance

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance