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Mera Naam hai Insurance and I am not an Investment

vector image of hands protecting people - Mera Naam hai Insurance and I am not an Investment

Reasons why we ignore Insurance in India

  1. “Ignorance is bliss”, till the time it’s not-

Indian culture is rich in a lot of things, but financial consciousness is not one of them. Children and young adults are educated in social do’s and don’ts, but not in matters of financial planning. All of us have seen examples around us when risk planning is discussed in the hind side.

But when life is running smoothly, we believe this party is going to last forever and so we never plan for bad times.

Up till 30 or even more we believe that our health is abundant and here to stay forever, then we realize it’s not the case. Not until we see family ruined bypassing of breadwinner that we put our responsibilities in perspective and plan for a term or life cover. But the sad truth is not every person gets that timely wake-up call, that firm nudge in the right direction. We spend only as many as others are doing or less and all the while viewing insurance as an avoidable expense, not as the only dependable asset in the time of utmost need.

Another reason is lack of enough money, Insurance costs money and many people cannot afford to buy a sufficient cover, however, things are changing now, with a lot of insurance plans available online, people can choose what suits their need.

  1. Who is to blame?

Probably the chief culprit, in this case, is the messenger, all the disclaimers, all the talk, and everything discussion portrays, discusses, and advertises insurance as the major financial decisions by insurance carriers and agencies.

Over time this has changed, and insurance advertisement now carry a more personal message and life perspective for eg “Sar utha ke jiyo”, Zindagi ke sath be Zindagi ke baad be” etc

However, the traditional narrative has not totally been junked while selling because it still works. You have been made to feel that you can afford to buy insurance because you will save on taxes. And all buyers have been made concerned about salary deduction in the month of January, February, and March. This is a very narrow perspective to make a financial security decision that can have a life-altering impact if not done to a sufficient level.

Another guilty is the social narrative that still pedals the narrative of saving and security in hard cash, gold, or other immovable assets, this is particularly true for the rural or semi-urban India. Since most cities see the large immigration flow in villages the misinformation is still quite common in the urban population set as well.

3. Too many similar:

This is a pain point for those who understand the need for insurance but still look at it primarily as a money-making investment option if not tax saving. These adaptors get caught up in the seller’s jargon of cover plus return narrative, hence, end up spending in a product that only partially addresses their financial security needs, all the while keeping them under an impression that they are sufficiently covered.

Since the insurance can be linked to many kinds of instruments and most times, they take precedence the buyer’s expectations or true needs are never fully addressed. Hence, it’s important for the buyers to educate themselves and take such mix instruments over and above the core Health or life/term plans. This delinking can only be made consciously by understanding that insurance is not an investment that one should see in light of return on investment (ROI).


Bringing it all together, insurance is a safe and reliable tool to manage unexpected financial loss during the course of life and in most cases, this is a substantial amount. However, looking at this as only a reoccurring expense or tool that can provide an assured amount is diluting the purpose of insurance. hence, while making choices regarding your insurance or insurance-linked product your priority goal should be to secure sufficient risk cover and everything else can be an add-on, otherwise, you run the risk of being left with only cream and no cake!

Susheel Agarwal

Susheel Agarwal

Susheel is a certified Happiness Coach, which enables him to help organizations develop healthy and happy workplaces. Years of extensive in-depth research by interacting with various leaders of happy & not so happy organizations, attending several Happiness and Leadership programs along with his own authentic experiences, Susheel has been successful in establishing a happy workplace. He currently works as a Thought Leader and a Passionate Coach, educating corporate leaders to do the same.

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