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In the face of rising premiums on insurance, we decided to embark on a journey to unravel, how Bangaloreans perceive insurance. Read this blog to know why insurance is a must-have.
Welcome to Bangalore! Nestled in the heart of India's Silicon Valley, where the fragrance of tradition intertwines seamlessly with the innovation of the future.
As you stroll through the lively streets of Bangalore, you'll be captivated by the warmth and friendliness of Bangaloreans!
The waves of globalization that swept across the city’s boundaries brought with them a sea of opportunities, and Bangaloreans embraced this change with open arms.
The city witnessed a technological revolution, and its heartbeat quickened with the rhythm of progress. But as the city’s skyline soared, so did the cost of living.
The soaring rent, and the daily struggle for affordable healthcare coupled with the ever-increasing prices of essentials like insurance, tested the mettle of Bangaloreans.
In the face of rising premiums and complex policy structures, we decided to embark on a journey to unravel, how Bangaloreans perceive insurance.
Do Bangaloreans See Insurance as a Wise Investment?
Through our candid interviews with a few Bangaloreans from different age groups, professions, and backgrounds, we delved into their perspectives on insurance and its role in their lives.
Here’s what we can learn from what they have to say.
1. What is Insurance and Why Do You Need It?
When we asked a few Bangaloreans Do you know what insurance is?
The hot answer we got was, "If I die, my family will get money."
In reality, insurance is a way to manage risk. It is a way to protect yourself from financial loss in times of an unexpected event.
When you buy insurance, you are essentially paying a premium to the insurance company in exchange for their promise to pay you a certain amount of money if something bad happens.
When we asked them Are you insured right now?
A person working in an IT company answered, “No I am just 26 right now and haven’t thought about it really.”
What is the best age to start an insurance plan?
The best age to start an insurance plan is generally in your 20s. You will also have more time to build up savings for your retirement.
Here are some of the benefits of starting an insurance plan at a younger age:
- Lower premiums: Insurance companies typically charge lower premiums for younger people, as they are considered to be at a lower risk of mortality.
- More time to build up savings: Starting an insurance plan early gives you more time to save up for your retirement. This is because you will have more years to contribute to your policy and take advantage of compound interest.
2. The Cost of Insurance: What to Expect
When we asked Bangaloreans How much do you think insurance premium costs?
The answers we got were, “I think maybe close to 500 a month” while another guy answered, “Around 10-15k a month I guess.”
Many people are unaware of the cost of insurance premiums, which can prevent them from purchasing insurance coverage.
So, let us explore what premium you should expect per month if you opt for insurance in Bangalore.
The cost varies depending on the type of insurance, the coverage you choose, and your individual circumstances.
However, in general, you can expect to pay more for insurance in Bangalore than in other parts of India. This is due to the high cost of living in this city.
Here are some examples of the average cost of insurance in Bangalore:
- Car insurance: ₹5,000-10,000 per year
- Health insurance: ₹10,000-20,000 per year
- Life insurance: ₹20,000-30,000 per year
3. The Many Types of Insurance: What Can Get You Covered?
Next, we decided to do something fun, and ask people: If you could insure a talent of yours what it would be?
We found an enthusiastic musician who said, “I would like to insure my music skills.” While another guy said funnily, “For me, it would be my humor.”
There are many different types of insurance available, covering a wide range of risks and assets.
So let us explore what are the different types of insurance:
- Life insurance: Provides financial protection for your loved ones in the event of your death.
- Health insurance: Covers your medical expenses, including doctor visits, hospital stays, and prescription drugs.
- Car insurance: Car insurance is mandatory in India, and it covers your liability for damage you cause to other people or property in a car accident.
- Home insurance: Covers your home and its contents in the event of disasters.
- Travel insurance: Covers your medical expenses, lost luggage, and other travel-related expenses. Travel insurance is especially important if you are traveling to a foreign country.
4. The Importance of Insurance Literacy
We were curious to know how much literacy Bangaloreans have regarding insurance, so we decided to ask them, “What is the best vs worst insurance advice you have gotten.”
“I have never received advice on insurance.” said one student.
The lack of mentorship on insurance and finance in schools and from elders can also contribute to a lack of financial literacy.
While a fitness enthusiast answered, “It's a burden to pay premiums so don't get health insurance instead spend that amount on a healthier lifestyle.”
Despite the growing insurance market, there is still a significant gap in understanding insurance products and their benefits.
Here are some key reasons why insurance literacy is essential in India:
- To protect against financial loss: Insurance can help protect individuals and businesses from financial loss in the event of a disaster.
- To provide financial security: Insurance can also help to provide financial security in the event of a loss of income, such as due to illness or unemployment.
- To make informed decisions about insurance: With good insurance literacy, people can make informed decisions about the types of insurance they need and the best policies for their individual circumstances.
- To promote financial inclusion: Insurance literacy can help to promote financial inclusion by making insurance more accessible to people who may not otherwise be able to afford it.
5. Do you think insurance is a scam?
We wanted to understand how much Bangaloreans trust insurance companies, so we thought of asking, Do you think insurance is a scam?
The very first answer we got was, “I think it is sometimes because a lot of companies try to get away without paying anything.”
While another guy declared that, “80% of insurance companies are scams.”
Insurance scams are a growing problem in India, and it is important to be aware of them so that you can protect yourself.
Here are some tips on how to protect yourself from insurance scams in India:
- Do your research: Before you buy any insurance policy, do some research to make sure that the company is legitimate and read other people’s reviews. Check with the Insurance Regulatory and Development Authority of India (IRDAI) to verify that the company is registered.
- Be wary of unsolicited calls and emails: Legitimate insurance companies do not typically cold-call or send unsolicited emails. If you receive a call or email from someone claiming to be from an insurance company, do not give out any personal information, and do not click on any links in the email.
- Read the policy documents carefully: Before you sign any insurance policy, be sure to read the policy documents carefully. This will help you understand what is covered and what is not covered by the policy. It is also important to check for any exclusions or limitations.
- Be aware of common scams: These scams include fake insurance policies, medical insurance fraud, and life insurance fraud, where scammers may pose as medical professionals and bill your insurance company for fraudulent services or may try to convince you to take a life insurance policy on someone who is already dead.
If you think that you may have been the victim of an insurance scam, you should contact the Insurance Regulatory and Development Authority of India (IRDAI) immediately. You can also file a complaint with the police.
Cost of Living in Bangalore
The cost of living in Bangalore can be high, but it is possible to live comfortably on a budget.
However, it can vary depending on your lifestyle and location.
Here are some of the essential aspects that shape the Bangalore cost of living:
- Accommodation: The cost of housing in Bangalore can vary significantly depending on the area's popularity and amenities. Average monthly rental costs for a 1BHK apartment typically start from Rs 11,000 onwards & Rs 15,000 for a 2BHK apartment.
- Transportation: Bangalore's traffic congestion is infamous! Public transport, including buses and the Namma Metro, is relatively economical. You can get a monthly bus pass starting at Rs 1,500 onwards.
- Healthcare: The cost of healthcare services in Bangalore can vary depending on the facility and the type of treatment required. While basic consultations may cost around INR 500 to INR 1,000, specialized treatments or hospitalizations can be significantly more expensive.
- Utilities: Monthly utility expenses encompass electricity, water, gas, and internet services. For a small apartment, these costs generally range from Rs 3,000 to Rs 5,000 per month.
Why Bangaloreans Must Have Insurance
Bangalore is a large and rapidly growing city with a population of over 13 million people. As a result, the cost of insurance in Bangalore is relatively high.
But there are some specific reasons why Bangaloreans need to get insurance:
- Lifestyle: Bangalore is a city with a fast-paced lifestyle, and this can contribute to stress, obesity, and other health problems. Pollution in this city can contribute to respiratory problems and heart disease. Bangalore is also infamous for the worst traffic in India, and this can lead to accidents.
- The cost of healthcare is high: The cost of healthcare in Bangalore is relatively high, and this can be a financial burden for many people. Health insurance can help to cover the cost of most medical expenses.
- Tax benefits: There are tax benefits available for people who have health insurance. You can avail of these benefits on the premium paid under Section 80D of the Income Tax, 1961.
For these reasons, it is important for Bangaloreans to specifically have health insurance.
How to Find Affordable Insurance in Bangalore
Health insurance is a financial contract between an individual (the policyholder) and an insurance company (the insurer) that provides financial protection against the cost of unexpected medical expenses.
Health insurance can be purchased for individuals or families, and there are a variety of plans available to choose from.
If you are not already insured, we urge you to consider getting a policy. Insurance can give you peace of mind knowing that you are protected in case of an emergency.
There are many different insurance providers out there, but if you're looking for affordable health insurance, Jar is the one.
Jar offers health insurance plans with the lowest premium starting at just ₹17/day, and includes more than 15 benefits, some of which are:
- Coverage upto ₹10L/annum
- 7000+ network of hospitals
- Ambulance coverage
- 100% cashless claims
- Unlimited restoration
- Unlimited teleconsultation
- OPD benefits
So, secure your future with Jar health insurance.