How India Lags in Term Insurance—Why It Matters?

Even now, with a protection gap of nearly 80%, India ranks among the worst globally

- SARBVIR SINGH

What links Japan's 2011 tsunami, the 9/11 attacks and covid-19? Beyond being large-scale tragedies, these events remind us how insurance helped rebuild lives when everything else collapsed. But not all tragedies make global headlines. Some strike quietly—like the sudden death of a family's sole breadwinner—pushing the household into financial distress.

India made notable progress in reducing poverty, with 415 million people moving out of it in 2005-2021, according to UNDP. Yet, low access to financial cover—especially term insurance—leaves many vulnerable. A Niti Aayog paper flags the death of a primary earner as a key but ignored poverty trigger. Term insurance, as a simple and affordable tool, protects income and future aspirations, helping households preserve their standard of living.

From resilience to risk: Insurance is a universal solution