In today’s world, life insurance is of utmost importance, regardless of one’s age. Life insurance not only provides insurance coverage to the insured, thereby offering financial assistance to their family members and nominees in case of an unforeseen event, but it also provides several tax benefits. Furthermore, according to a recent UN report, India also has the world’s largest youth population, and this shift in culture and impetus on financial prudence is expected to drive positive change in the insurance industry .
In the recent past, young adults have also started to realize the importance of purchasing life insurance plans. According to reports, the insurance penetration in India surpassed 3.4 percent in FY16, and the insurance industry is expected to reach US$ 280 billion by 2020. In FY17, the insurance penetration reached 3.69 percent, and in FY19, the gross premiums written in the country reached US$ 82.8 billion, with US$ 58.5 billion coming from the life insurance sector. Furthermore, the life insurance industry in India is also expected to grow 12-15 percent annually, for the next three to five years .
Various factors, including demand for retirement products like annuity, and growing urbanization are expected to drive the growth of the life insurance sector in the country. Furthermore, the life insurance industry also accounts for nearly 75 percent of total insurance premium.