Just Released !
August 2017
Life Insurance is THE Preferred Investment
For too long we are being told that life insurance is not preferred by investors any more. We are being told that mutual funds is growing leaps and bounds and that investing in life insurance is out dated. The Reserve Bank of India once again confirms the overwhelming preference of the Indian investor for low risk investments, including life insurance and pensions.
Latest Data from Reserve Bank of India, August 2017 for the FY 2016-17
There is good news for all of us. The Reserve Bank of India has released the latest figures for the financial year 2016-17. In the year 2016-17, the Gross Financial Savings of the Household Sector (GFS – HS) was 11.8 % of the Gross National Disposable Income (GNDI). Out of this 2.9 % is accounted for by life insurance and 1.9 % by provident and pension funds. Shares, debentures, and mutual funds only accounted for 1.2 %. The savings in life insurance went up during 2016-17 by 1 % from 1.9 % to 2.9 %.
Banks continue to top the preferred destination for savings with 7.3 %. The total of low risk investments for the household sector is 10.5 %. Nearly 89 % of savings of the households in invested in low risk investments. (Also read, available in this Blog Archives, our article on Where Do Indians Invest? )
Believe authentic data from authentic sources, not biased media reports
Life insurance is not an outdated product. In fact it is the only financial product that offers risk protection for both – life’s risks and investment risks.
For Life Insurance: Sell Risks Not Returns
For Risky Investments: Returns are Uncertain, Risk is Certain
Keep coming to this Blog you will continue to get authentic data, knowledge, skills and techniques to sell life insurance
Source: https://rbi.org.in/scripts/AnnualPublications.aspx?head=Handbook%20of%20Statistics%20on%20Indian%20Economy
Sir, is there any site address of RBI from where we can show the client, where Indian save? KOUSIK
Please go to the following link Kousik: https://rbi.org.in/scripts/AnnualPublications.aspx?head=Handbook%20of%20Statistics%20on%20Indian%20Economy. The data that I have extracted for the article is available through that link. However a lay person will find it difficult to read and analyse from the data given in the RBI website. Hence the Table on “Components of Household Savings” has been presented in this Blog in a more understandable form. Your customers will be more comfortable with the simplified table in this blog rather than the RBI website. The choice is however yours. Wish you all the best. Ashok Kumar