Tamil Nadu Among India’s Most Insurance-Aware Markets: 100% Awareness, 70% Ready to Buy Life Insurance Soon

Key insights revealed by a study initiated by Insurance Awareness Committee (IAC-Life) in collaboration with IMRB Kantar

• 100% awareness of life insurance among respondents
• 70% of non-policyholders intend to invest in life insurance within the next 3–6 months
• 63% are aware of savings-linked life insurance plans
• 34% currently hold a savings-based life insurance policy
• Top purchase motivators among intenders and owners include financial security of the family (63%) and child’s future (48%) respectively

CHENNAI, India, Sept. 3, 2025 /PRNewswire/ — A recent study by the Insurance Awareness Committee (IAC-Life), conducted in collaboration with Kantar, a market research platform has identified Tamil Nadu as one of the states with a high potential for life insurance penetration.

The study underscored the importance of region-specific insights in advancing life insurance penetration. It has presented data that helped understand financial preparedness and life insurance awareness across regions in India.

The study pegs the southern state as one of India’s most insurance-aware and future-ready societies. Tamil Nadu recorded 100% awareness of life insurance and a high purchase intent of 70% among those yet to buy a policy, well above the national average of 55%, and notably higher than other states like Uttar Pradesh (58%), West Bengal (53%), and Andhra Pradesh & Telangana (26%). Tamil Nadu’s numbers reflect a strong combination of financial planning and financial prudence mindset, with 88% of respondents saying they prefer to plan ahead and prepare for unexpected life events.

“Tamil Nadu clearly demonstrates a readiness to move from awareness to action when it comes to life insurance,” said Mr. Venkatachalam Iyer, Co-Chairperson, Insurance Awareness Committee (IAC-Life). “This positions the state as a key priority in our ongoing ‘Sabse Pehle Life Insurance’ campaign rollout,” he added further.

The Insurance Awareness Committee (IAC-Life) aims to carry forward the momentum of its recently launched revised phase of campaign – ‘Sabse Pehle Life Insurance’ through a targeted outreach in Tamil Nadu that aims to utilize some key insights:

•  100% awareness of life insurance among respondents—highest among surveyed regions.

• 70% of non-policyholders intend to invest in life insurance within the next 3–6 months (vs. 55% nationally), indicating greater acceptance of the need for financial planning.
• 63% are aware of savings-linked life insurance plans offering lump sum or monthly income, signifying better awareness.
• 34% currently hold a savings-based life insurance policy, indicating high acceptance of products other than term policies.
• Top purchase motivators among intenders include financial security of the family (63%) and among owners include child’s future (48%).

Despite 68% of respondents in Tamil Nadu expressing interest in savings-linked life insurance plans, only 34% currently own one, highlighting a 34-point gap that underscores the need for simpler, relatable communication to address product complexity, perceived cost, and relevance to everyday life.

Through regional outreach, influencer storytelling, vernacular engagement, and myth-busting narratives, the Committee aims to help consumers better understand life insurance as a dual-purpose product—protection and savings, in Tamil Nadu.

The recently launched revised phase of Sabse Pehle Life Insurance campaign 2.0 of Insurance Awareness Committee (IAC-Life) aims to build on the trust of the state’s residents on life insurance by deepening awareness around specific product categories, including term and savings plans, showcasing real-life stories, and making life insurance simpler to understand and access. The Committee’s continued efforts under the Sabse Pehle Life Insurance 2.0 campaign aim to move India from awareness to action—ensuring life insurance becomes not just a known option, but a trusted financial essential across every Indian household.

About Insurance Awareness Committee:

87% of India continues to grapple with a significant life insurance protection gap, which continues to increase, exceeding 90% amongst those aged 18–35. This growing vulnerability is a threat to families’ financial security and aspirations.

Addressing this challenge on a war footing is crucial to maintaining our society’s socio-economic resilience and security. The Insurance Awareness Committee was formed under the aegis of the Life Insurance Council to take action on this issue.

Formed in 2019, 24 Life Insurance firms have come together to contribute under the guidance of six CEOs nominated to lead the agenda. Further comprised of a cross-industry marketing team supported by creative/ media agencies, the Insurance Awareness Committee researches, plans, creates and deploys nationwide campaigns that drive awareness, understanding and consideration of life insurance products.

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