Chennai:
Ninety six per cent of Indian households said they
feel they cannot survive for more than a year on their
current savings in case of the loss of a major source
of household income, according to a new survey conducted
by Max New York Life Insurance Company Ltd and the National
Council of Applied Economic Research (NCAER).
The
survey found that while 81 per cent households save, they
do not invest wisely and while as many as 54 percent are
confident about their current and future financial stability,
only one fourth of Indian households own a life insurance
policy.
Even
in 2007, only 51 per cent of Indian households deposited
their savings in banks, while 36 per cent simply kept
them at home.
The
India Financial Protection Survey also found that
only 14 percent of the life insurance policy owners were
women. The key findings from a sample of over 63,000 Indian
households across rural and urban India indicated that
there was little or no awareness about the need for financial
protection.
But
NCAER, noted, "The results broadly confirm the fact
that Indian households are in the habit of saving and
that they are fundamentally optimistic about their financial
future."
The
survey also found that while life insurance is a protection
tool, it is largely used as a tax and saving tool in India.
Experts said there is a need to reorient the consumer
about the benefits of life insurance for both financial
protection and long-term wealth creation.
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