Articles 1777 views August 14, 2020

There are some countries in the world that mandate their citizens to buy a life insurance plan. On the other hand, term insurance plans support for your family when you are not with them. It will give you a life cover so that your family will receive the death benefits after you. But there are many other reasons for not buying term insurance plans in India. You must see the reason why an individual avoids a term insurance plan and invests his income in other insurance plans. Although a life insurance plan has various benefits, still many individuals don’t buy it.

Term Insurance

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Why People don’t buy a Term Insurance Plan in India

There are various reasons for not taking a life insurance policy in India, and you must explore all the reasons below:-

  1. No Maturity Benefits
  2. Unaware about the Product
  3. Bad Word of Mouth Marketing
  4. No Survival Benefits

No Maturity Benefits

There are some term insurance plans that don’t give you maturity benefit. In simple words, if you invest a certain amount of premium for an insurance plan, then you expect some returns at the time of maturity. But in a Term Insurance Plan, your family is entitled to take the sum assured after your death, and if you survive the policy term, then you are not allowed to any benefit.

Unaware About the Product

There are many individuals who don’t do in-depth research about the product. They just know that the term insurance plan doesn’t have a maturity benefit, and all their investment will be wasted if they survive the policy term. But, you must be aware of the fact that there are some term insurance plans with maturity benefit in which you will receive a certain sum of money at the time of maturity if you successfully survive the policy term.

Bad Word of Mouth Marketing

Some individuals also get influenced by their colleagues, and due to peer pressure, they don’t invest their money in the term insurance plan. They prefer investment insurances and health insurance in the place of a life insurance plan. So, peer pressure also plays a vital role in not buying a term insurance plan.

No Survival Benefits

Every individual thinks that there is no return in a term plan. It means that if you survive the tenure of the policy, then you will not receive any return on your premiums. As per the individual’s perspective, all your premiums will go waste if you survive the policy term.

Things you’ll miss if you don’t buy a Term Insurance Plan

  1. High Sum Assured
  2. Family Protection
  3. Low Premiums
  4. No Waiting Period

High Sum Assured

The term insurance plans usually have a high amount of the sum assured. It simply means that after your death during the policy term, your family will receive a high sum assured. This sum of money will be enough for your family to meet future expenditures when you are not with them.

Family Protection

Your family will have financial protection if in case you are not with them in the future. If in case anything happens to you then your family will be safe and live their life happily in the future. Term insurance plans are best for those families who are dependent on only one member of the family.

Low Premiums

The term insurance plans usually have a low premium and you will have to invest just a small part of your income. On the other hand, low premiums will give you a high sum assured, and the amount of the premium is less in the term insurance plan than in the health and investment insurance plan.

No Waiting Period

There is no waiting period in a term insurance plan. Your life cover starts from the date of inception of the policy. Suppose you have purchased a term insurance plan Day 1 and you die on Day 2 then your family will receive the full amount of the sum assured that was decided when you were taking the plan.


There are various reasons for not buying term insurance plans in India, but if you see the benefits of buying a term plan, then you might change your mind. So, here you can see the reasons for avoiding a term insurance plan in India.

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