We wanted to share few interesting facts and statitics about life insurance in India, but decided to include facts from other countries too. The statitics of facts shared here from other countries may not be applicable here in India but the element can be true here too!
1. Fact about Life insurance corporation: There were so many insurance companies operating in pre-independent India. After the independence, the government merged 245 insurance companies to form Life insurance corporation. This was in year 1956, when the government decided nationalise these companies. The merger included of 154 life insurance companies, 16 foreign companies and 75 provident companies.
2. In America, 70% of people are interested to buy life insurance that doen't require a medical exam: Well, this is interesting and we are sure that here in India too there are people who wish to avoid medical tests. There could be many reasons for this - few people hate needles used for blood tests others may fear of diseases that may come out after the medical tests and they simply want to escape. Few people who are aware of their medical conditions and may fear that they may be denied life insurance if they go through medical examination!
3. Almost 50% of policyholders stop paying after 3 years: According to a data which is based on LIC's policyholder's behaviour, the 50% of policyholders stop paying after 3 years. According to IRDA data, 37% of its policyholders stop paying only after the first year itself. After the 5 years, LIC loses 62% of its policyholders. Only 38% policies continue after 61 months.
4. A life insurance policy has got 4 players! These players are the insurer, the owner, the insured and the beneficiary. The insurer is the insurance company, who would pay claims in the case of a death. The owner of the policy is responsible for paying premiums to the insurance company. The insured is the person upon whose life the policy is based. The beneficiary is the person, trust or other entity due to receive the life insurance claim—or death benefit—in the case of the insured’s passing.
5. 2 in 3 adults think life insurance is too expensive: People drastically overestimate what it costs to buy life insurance. In America, 80% of people think that life insurance is more expensive than it actually is.
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