!['Combined Life, Health Plans Won't Increase Complexity'](https://cdn.magzter.com/Outlook Money/1711969031/articles/FUlusiB5k1711978352817/COMBINED-LIFE-HEALTH-PLANS-WONT-INCREASE-COMPLEXITY.jpg)
While on one hand the insurance market is expanding in India, penetration is reducing. How do you explain this?
Penetration is usually expressed as a percentage of the gross domestic product (GDP), and so it depends on the GDP growth as well. If I were to look at it from a standalone basis, there is a large opportunity for life and health insurance penetration in India. The reasons are many: a larger population is coming into the lower middle class and middle class segments, people are living longer, aspirations are rising, and people are beginning to understand the value of life insurance. Also, India is among the top countries in terms of overall GDP, so there is percolation of the overall GDP at an individual level, which will also continue to rise.
I think that with the right regulation, the right level of product innovation, and rising affordability and awareness, India can reach an inflexion point in 5-10 years and move towards a point where by 2047 every Indian will have insurance.
Penetration went up during Covid, but now those memories seem to be fading. Along with that, will last year’s new tax norms for high-ticket policies and the new tax regime making the Section 80C benefit irrelevant, pose a challenge?
We saw an uptick in term insurance after the onset of Covid. But the need for term plans has not been lost, in terms of messaging, even now.
For most insurance companies, the term insurance portfolio is growing at a faster rate compared to the company’s overall growth. Term insurance is unlikely to grow more meteorically, but it can in some quarters, over the next 2-5 years. Also, as GDP per capita rises, we will see the need for term insurance rising. We are already seeing healthy rates—in terms of sum assured, HDFC Life grew upwards of 38 per cent in the first nine months of the current financial year.
This story is from the April 2024 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 2024 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
![Guide To Build Your MF Portfolio](https://reseuro.magzter.com/100x125/articles/242/1787367/8SrFWm-UP1722859674427/crp_GUIDE-TO-BUILD-YOUR-MF-PORTFOLIO.jpg)
Guide To Build Your MF Portfolio
There are ‘n’ number of funds to choose from and one has to scrutinise several factors, besides just past returns, to make a bouquet of funds that best aligns to one’s goals
![Self Image: Ticket To Success?](https://reseuro.magzter.com/100x125/articles/242/1787367/E6FeTvE9j1722860346019/crp_SELF-IMAGE-TICKET-TO-SUCCESS.jpg)
Self Image: Ticket To Success?
Your capacity for success will be altered according to the image you have of yourself. So, set it on the right trajectory to move to a higher level
![What Budget 2024-25 Means For You](https://reseuro.magzter.com/100x125/articles/242/1787367/jtkqG1Bp-1722858418527/crp_WHAT-BUDGET-202425-MEANS-FOR-YOU.jpg)
What Budget 2024-25 Means For You
Finance Minister Nirmala Sitharaman announced a few changes in the new tax regime, while leaving the old one untouched. The government also increased taxes on long-term capital gains. We decode what the Budget means for you
![Factor Investing In Mutual Funds](https://reseuro.magzter.com/100x125/articles/242/1787367/8O9EP0i321722861678351/FACTOR-INVESTING-IN-MUTUAL-FUNDS.jpg)
Factor Investing In Mutual Funds
A blend of active and passive fund management approaches, factor investing offers diversification, but investors should ensure these factors align with their goals and risk profiles
![Mistakes to Avoid in the Retirement Planning Stage](https://reseuro.magzter.com/100x125/articles/242/1787367/t529ajgQU1722861357816/MISTAKES-TO-AVOID-IN-THE-RETIREMENT-PLANNING-STAGE.jpg)
Mistakes to Avoid in the Retirement Planning Stage
Not starting early, not looking at retirement planning holistically and not consulting a financial advisor are among the top mistakes one should avoid
![Asset Allocation Is Akin To Picking A Cricket Team; Here's Why](https://reseuro.magzter.com/100x125/articles/242/1787367/MrLzGEA6P1722861149111/ASSET-ALLOCATION-IS-AKIN-TO-PICKING-A-CRICKET-TEAM-HERES-WHY.jpg)
Asset Allocation Is Akin To Picking A Cricket Team; Here's Why
Judicious asset allocation will enable you to generate maximum gains and achieve different goals at different intervals by effectively positioning them according to the market situation.
![EMI VS SIP Debate: Which Path Aligns with Your Financial Goals?](https://reseuro.magzter.com/100x125/articles/242/1787367/3KyGxaF9r1722860902496/EMI-VS-SIP-DEBATE-WHICH-PATH-ALIGNS-WITH-YOUR-FINANCIAL-GOALS.jpg)
EMI VS SIP Debate: Which Path Aligns with Your Financial Goals?
Although EMls may seem initially manageable, the final cost can be much higher; SIPs, on the other hand, focus on capital appreciation through marketlinked investments rather than capital repayment.
![Mutual Fund SIP: Tool to Make The Impossible Possible](https://reseuro.magzter.com/100x125/articles/242/1787367/mWz6sTaUx1722860785612/MUTUAL-FUND-SIP-TOOL-TO-MAKE-THE-IMPOSSIBLE-POSSIBLE.jpg)
Mutual Fund SIP: Tool to Make The Impossible Possible
A mutual fund systematic investment plan allows you to reinvest the interest earned into the fund, thus helping you to build a big corpus even with small contributions over the long term.
![Why are Manufacturing Funds Worthy of Your Portfolio?](https://reseuro.magzter.com/100x125/articles/242/1787367/ZlLIPM8nB1722860615429/WHY-ARE-MANUFACTURING-FUNDS-WORTHY-OF-YOUR-PORTFOLIO.jpg)
Why are Manufacturing Funds Worthy of Your Portfolio?
India's manufacturing sector greatly impacts fields like logistics and maintenance, making this thematic fund a strong addition to your investment portfolio.
![How To Help Your Ageing Parents](https://reseuro.magzter.com/100x125/articles/242/1787367/YhyqF96sC1722860258130/HOW-TO-HELP-YOUR-AGEING-PARENTS.jpg)
How To Help Your Ageing Parents
Experts discuss how financial conversations with parents need a big dose of sensitivity, and highlighted the needs of seniors to help those caring for their parents