Life Insurance Is the Most Preferred Investment Option by Indians
(A study by AC Nielsen Co., Nielsen Life 2008 survey)
The vast array of investment options available in the Indian market today is an indicator of the robust growth the market is experiencing. As the different financial categories jostle to win consumers’ confidence and trust, life insurance still reigns as the preferred investment instrument
Nielsen Life 2008 is a syndicated study to provide insurance players an understanding of the overall Indian insurance market. It gauges awareness, perceptions, concerns, motivators/barriers, satisfaction levels and usage towards insurance among retail consumers.
List of future investment instruments in percentage by respondents:
Life insurance (30%)
Bank Fixed Deposits (11%)
Life Insurance Child Plans (6%).
Remaining 62% is spread over other financials such as equities, debt instruments etc.
In the wake of the global financial meltdown, most investors are looking at options which help them safeguard their capital. Life insurance is seen to be one such avenue.
The three key triggers for buying life insurance are Family Protection in case of untimely death, Retirement Corpus and Securing Child’s Future.
Interestingly Insurance for Child emerged as a key trigger compared to the previous leg of the survey in 2004. Tax exemption as a trigger to purchase insurance has dropped significantly compared to 2004.