Life Insurance Policy: In the last five years, 47 percent have either surrendered their life insurance policy or not renewed the policy. According to SBI Life’s Financial Immunity Report, 68 percent of people also believe that they have adequate insurance cover, but only 6 percent actually have adequate insurance cover.
The report said that there are 71 percent of people in the country who believe that insurance is necessary for financial immunity, but do not want insurance. At the same time, 80 percent say insurance is necessary for financial security. However, 94 percent of people either have no insurance or inadequate cover.
37 percent have other sources of income
The report claims that 37 percent of people in the country have taken other sources of income instead of insurance and 41 percent believe that secondary income will strengthen financial immunity.
According to the report, 87 percent of consumers are planning to purchase life insurance in the next five years, of which 46 percent may take insurance cover by next year. Life and health insurance policy holders have a financial resilience score of 7.4, while uninsured consumers have a financial resilience score of 6.3.
Why are people surrendering their insurance policies?
Inflation is the main reason why a large number of people have surrendered their insurance policies in the last five years. The report said that amid rising inflation, people’s lives have become difficult and money is needed more. At the same time, medical expenses have also increased as compared to before, due to which most of the people have surrendered their life insurance policies.
What is SBI Life’s Financial Immunity Report?
On behalf of SBI Life, it presents reports on financial preparedness of people. The report focuses on financial needs and highlights the financial shortcomings of people. This is the third report of SBI Life. In this report, 5000 people from 41 cities of the country have been studied.