India's Life Insurance Coverage Falls Short: Report Reveals Critical Gaps

• India's life insurance coverage is significantly below adequate levels for earning individuals, despite its role in financial protection and savings.
• Traditional metrics like penetration and density are insufficient; the Life Insurance Coverage Factor (LICF) shows India's LICF at 1.03, far from the suggested 10x GDP benchmark.
• Low coverage is attributed to savings-oriented policies dominating, group/single-premium policies, and challenges in awareness and accessibility.
• To meet the 2047 coverage target, Sum Assured needs a 23% CAGR, requiring faster adoption and targeted policy interventions.
• Solutions include expanding government schemes, promoting employer-backed coverage, and making term insurance more accessible through smart underwriting.