Why is life insurance losing lustre as a savings scheme for India's youth?

As life insurance loses share in households' financial savings, insurers are rushing to create new products, mostly in health insurance, to stay engaged with a younger demographic

A recent corporate presentation by the Life Insurance Corporation, India's largest insurer by value, highlighted a disconcerting issue facing insurance firms: that of how dimly millennials in India view the need for insurance. Not surprisingly, the share of life insurance in the incremental household financial savings of Indians has begun to dip after a brief surge following the Covid-19 pandemic. What's more, the decline in share comes at a time when the overall basket of incremental household financial savings is growing.  

 

Young people in India, it would seem, are simply not interested in buying long term insurance, reflecting a global