A recent survey by Bajaj Allianz Life Insurance, titled ‘Underinsurance Survey 2025’, has revealed that a staggering 81% of Indians believe a life insurance coverage of less than 10 times their annual income is sufficient for their financial security. However, the actual coverage held by individuals is significantly lower, averaging just 3.1 times their annual income—well below the recommended 10x benchmark.
The study, conducted in collaboration with NielsenIQ, surveyed 2,000 individuals across various Indian cities, uncovering a concerning gap in financial preparedness. Despite this shortfall, 82% of respondents remain confident that their current life insurance will be enough to secure their family’s future. In addition, over a third of Indians have never reviewed their life insurance coverage, even after major life events such as marriage, childbirth, or income growth. The survey also highlights that the average age of first-time insurance buyers has decreased from 33 to 28 years, driven by factors like family responsibilities and income levels.
The survey findings underscore a critical protection gap in India, with the country’s total sum assured standing at only 70% of its GDP, far below global benchmarks. Tarun Chugh, MD & CEO of Bajaj Allianz Life, emphasized the need for Indians to reassess their coverage needs, factoring in income, liabilities, and future aspirations. In Guwahati, as a growing urban center, the demand for life insurance is increasing, though awareness around adequate coverage remains limited. Many residents in the region are underinsured, with a lack of regular reviews of their policies. Bajaj Allianz Life aims to bridge this gap by raising awareness about the importance of securing life cover at least 10 times one’s annual income, ensuring families are well-protected financially.