Reasons Why Nowadays Youth Are Not Taking Life Insurance Policy

Insurance in India is still a growing business when compared to Western countries. Most likely, this is because it isn’t required by law. Even while the number of people purchasing life insurance has increased dramatically, many people are still unprotected.

Numerous Indians put off getting life insurance because they either don’t comprehend its significance or believe it to be an unnecessary investment.

Reasons for not purchasing life insurance in India

Inability to comprehend:
Insurance firms in India offer a variety of insurance packages based on customer requirements, so there is something for everyone.

With so many alternatives available, it’s easy for customers to become disoriented and end up choosing the wrong package. You can select the proper life insurance coverage for your family based on your preferences and needs.

It’s easy to neglect or delay getting life insurance because it’s not required by law in India. In addition, there is no rule dictating a certain age range for purchasing insurance.

In general, those in good health and free of disease do not prioritize protection and assume that they do not require any life insurance.

However, there is evidence to imply that four out of ten Indian families dependent on a single wage earner will have difficulty meeting their living expenditures if the breadwinner dies.

If you get life insurance, you will be able to provide for your family in the event of your untimely or unexpected death.

People in India often avoid purchasing life insurance because they believe it is too expensive and see it as extra. Misconceptions about costs are another typical factor. However, the reality is that it is inexpensive and easy to obtain based on individual circumstances.

What is the point of having life insurance if I have so much money?

People often assume that leaving behind assets like enterprises and expecting the family to liquidate them to cover their financial obligations is acceptable (in case of loss of a steady income).

In their haste to liquidate their assets, they neglect to account for the length of time it will take, as well as the hardships it will cause their loved ones.

Young adults between 25 and 35 like to spend on vacation and luxuries, but only a small percentage consider how to safeguard their loved ones financially in the event of early death.

A mere 44% of them were aware of term life insurance, and only 17% had purchased it in the prior year. 22 percent of urban Indian youngsters aren’t even considering buying a life insurance policy online because they have other investments*, alarmingly

Having life insurance coverage provides financial security for your loved ones in the event of your death. You won’t have to worry about these issues if you have a life insurance policy in place. If you want to protect your loved ones from financial ruin, you must purchase life insurance.

Unaware of the monetary dangers

Rather than taking an insurance policy to protect themselves from hazards, most Indians prefer to live in denial, believing that “nothing bad will ever happen to me.”

The majority of Indians also know very little or nothing about the financial ramifications of not having adequate insurance coverage.

Employer-sponsored health insurance

Many Indians put off purchasing life insurance coverage for this same reason. In India, several businesses offer insurance to their employees as a perk of employment.

The insurance given by your employer may cover your necessities, but you should be aware that this may not be sufficient for your situation.

Additionally, it’s possible that the insurance supplied by your work may not extend to cover all of your relatives. So, even if your job provides insurance, you should purchase a separate policy to ensure your family’s complete security.

Good physical and mental health

Purchasing life insurance is often postponed in India due to the belief that one is too young or healthy to require it. If you agree, you should know that the optimum time to acquire insurance is while you’re young and healthy and can get it at a cheaper premium cost. Delaying insurance purchases until later in life will result in a higher premium.


It is not required to have life insurance in India. Furthermore, there is no legislation dictating when a person should start shopping for insurance.

People don’t prioritize protection because they think they can always acquire it later. However, studies show that four out of ten families who are dependent on a single wage earner will find it difficult to cover household expenses if that person passes away. If you wait too long to get insurance, your family may be in financial trouble if you die suddenly or unexpectedly.

People in India are also reluctant to purchase life insurance because they believe it is too expensive to be worth it. In reality, it’s affordable for everyone. Term life insurance policies can be purchased for as little as INR 500 per month and provide coverage up to 5 lakh INR.

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