3 out of 4 rural Indians fear savings will diminish in 10 years, 1 in 2 unable to manage daily expenses: Study

"Over 74 percent of respondents believe their savings will vanish in 10 years. However, about 31 percent of respondents are saying that their savings will vanish in one year. Now, that is very precarious if 1/3 of people think their savings will vanish in a year. And if 40 percent of people haven't thought about buying insurance at all, you can imagine the kind of work that we need to do," Prashant Tripathy, MD & CEO of Max Life told CNBC-TV18.

He added this segment of society would need more and more protection and insurance coverage at a reasonable cost.

The survey revealed 6 out of 10 in rural India have started to cut down their expenses to keep up with rising prices. The survey highlighted, ‘1 out of 2 is unable to manage daily expenses.’ Additionally, 1 out of 4 respondents was unsure about the corpus of savings needed for the future.

Meanwhile, the survey also pointed that rural India prefers savings products over term plans.

In the case of life insurance ownership, only 22 percent of India’s rural population own life insurance products compared to 73 percent across urban India. The insurance coverage among the rural population is driven largely by government schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and others. Max Life, which sells around 25 percent of its policies in rural India, is eyeing to grow its rural portfolio in times to come.

The survey also stated the low uptake of insurance can be primarily attributed to inadequate funds to buy life insurance (41 percent), high premiums (32 percent), and multiple buying formalities (24 percent).

Like urban India, rural India is keen to save to support kids' education, kids' marriage and so on and so forth. The survey stated 64 percent of India’s rural population showcased an inclination to save for their children’s education, while 41 percent cited kids’ marriage as a savings imperative.