ALM Strategy and Insurance Market Opportunities
Reasons for buying insurance - Tax as a reason has declined
Top reasons to buy life insurance 1
Customer behaviour / trend 2
Protect family in case of death
To secure child's education/marriage
Old age security/retirement
2019 rank
2013 rank
1
1
2
2
3
3
Macro-level
Economy
•
State of the economy
•
Stock market
8
Individual-
•
4
level
Customer
•
•
7
Micro-level
Product
•
specifics
Age
Income
Risk appetite
Guaranteed returns
with add-ons/ riders
• Enables diversification
For disciplined saving
Good returns
4 56
Safe investment option
7
4
Additional investment option
Dual benefit of investment and insurance
8
9
9
4
Tax Saving
To meet additional life cover
10
10
-----
Major reasons to buy life insurance continue to be protection for family, securing child's needs and retirement planning
Tax saving is the 9th reason to buy life Insurance, compared to 4th in 2013
Share of >2.5 lakh ATS has increased from less than 1/5th to ~1/4th within ULIP business in the last 3 years (despite tax being
applicable in that category in the last 2 years)
Source: 1. The Nielsen Company, Life Insurance - U&A 2019 report,
39
2. HDFC Life survey
HDFC
LifeView entire presentation