New Delhi: India is home to several households where a single income often supports an entire family or even generations. In such setups, life insurance plays a critical role in protecting household income. Term insurance remains the simplest and most affordable form of life cover. However, despite growing awareness about its importance, India continues to remain significantly under-protected. Millions of households either do not have adequate term cover or postpone purchasing it altogether.
The challenge is not always about lack of intent. Industry experts point to a combination of factors holding people back. These include affordability concerns, complicated underwriting processes, documentation fatigue, and the perception that term life insurance is difficult to buy.
The landscape is now changing with the adoption of digital underwriting. With lower servicing and acquisition costs driven by digital processes, pricing is becoming better and more efficient. This shift is resulting in a meaningful improvement in affordability, making it easier for more households to access term life insurance.
