A new survey by Bajaj Allianz Life Insurance, in collaboration with Nielsen IQ, has revealed alarming findings regarding life insurance coverage in India. The ‘Underinsurance Survey 2025’ found that 81% of Indians believe life cover of less than 10 times their annual income is sufficient for financial security. However, the actual coverage is much lower, averaging just 3.1 times their income—well below the industry-recommended benchmark of 10x.
The survey, conducted with 2,000 respondents from metro, tier 1, and tier 2 cities, also highlighted that over a third of Indians have never reviewed their life insurance coverage, even after significant life changes like marriage or childbirth. Despite this underinsurance, 82% of Indians remain confident that their current coverage will protect their family’s financial future.
Tarun Chugh, MD & CEO of Bajaj Allianz Life, emphasized that India’s total sum assured stands at just 70% of GDP, much lower than global standards, leaving families financially vulnerable. He urged Indians to reassess their life cover needs, recommending at least 10 times their annual income. In Guwahati, residents are increasingly aware of the need for life insurance, but many still lack adequate coverage. Bajaj Allianz aims to address this gap by educating the market on the importance of comprehensive life insurance, ensuring greater financial security for families in the region.
