India’s life insurance industry has urged consumers to look beyond short-term expectations and recognise the long-term financial protection and security that life insurance offers. The appeal comes amid efforts to improve awareness about the role of insurance in safeguarding families against financial uncertainties. The Insurance Awareness Committee–Life Insurance (IAC-Life) said life insurance should be viewed as a long-term financial protection tool rather than being assessed solely on immediate returns. According to the committee, benefits such as family security, disciplined savings and income protection become more visible over the life cycle of a policy.
“Life insurance is designed to deliver value over time through financial security, protection for families and disciplined savings,” said KamleshRao, Chairperson of IAC-Life. While acknowledging concerns such as mis-selling, Rao said such instances account for only a small portion of an industry that continues to support millions of policyholders across the country. For consumers, one key safeguard is the free-look period, a feature unique to life insurance that allows policyholders to review and return a policy within a stipulated timeframe if it does not meet their needs. The industry also paid more than ₹6.3 lakh crore in claims during FY2024-25, including death benefits, maturities, annuities and withdrawals.
Increasing financial awareness among salaried employees, industrial workers and young professionals is driving interest in life insurance products. Industry experts believe the city’s growing middle class and expanding financial services ecosystem could help boost insurance penetration and address the protection gap among younger consumers. IAC-Life noted that 87% of Indians continue to face a life insurance protection gap, with the figure exceeding 90% among those aged 18–35. Formed in 2019 under the Life Insurance Council, the committee comprises 24 life insurance companies working together to promote awareness and strengthen financial security across India.
