LIC Chief Says Insurance Stays a Push Product Until Awareness Rises: What You Should Do

LIC's managing director and CEO R Doraiswamy says insurance will stay a "push product" until awareness improves. That's the view reported by Moneycontrol.com.

A push product is one that agents sell to you. You rarely walk in and ask for it yourself. For you, the message is simple. Don't wait for a sales call. Learn what cover you need and buy it on your own terms.

Key takeaways

• A push product is sold by agents. Buyers seldom ask for it first.
• According to reporting by Moneycontrol.com, LIC's chief links this to low public awareness.
• Low awareness often means people hold too little cover.
• You can fix this yourself by checking your cover this month.
• Compare plans before you buy, and don't rush at a sales pitch.

What does a push product mean in simple terms?

Some things people buy on their own. Think of a phone or a bag of rice. Other things need someone to knock on the door. Insurance is often in that second group.

The reason is easy to see. Insurance pays off only when something bad happens. Most of us don't like to think about that. So we put it off, and an agent has to remind us.

When people understand what a policy does, they start to ask for it. That's what the LIC chief's comment points to, as reported. Awareness has to come first, and then buying will follow.

What changes for savers and borrowers?

The comment itself doesn't change any premium, rule or policy. It does tell you something about how the market works. If you only buy when someone sells to you, you may buy late. You may also buy the wrong thing.

Here's a simple worked example. A common rule of thumb is to hold life cover of 10 to 15 times your yearly income. Say you're 35 and earn ₹8 lakh a year. That means cover of ₹80 lakh to ₹1.2 crore.

Now add a home loan. If you owe ₹30 lakh on a home loan, your family would also have to carry that debt. You can see what the monthly payment looks like with an EMI calculator.

Yearly income	Cover at 10 times	Cover at 15 times
₹5 lakh	₹50 lakh	₹75 lakh
₹8 lakh	₹80 lakh	₹1.2 crore
₹12 lakh	₹1.2 crore	₹1.8 crore

These are rules of thumb, not fixed limits. Your own number depends on your loans, savings and family needs.

Who is affected?

Most people feel this in some way. But a few groups are hit harder.

• First-time earners: They often skip cover because they feel young and healthy.
• Families with loans: A home or car loan stays with the family if the earner dies.
• Self-employed people: They have no employer cover, so they must buy their own.
• Parents: They rely on one policy that may be too small today.

If you're in any of these groups, a sales call isn't the right trigger. Your own life situation is.

What should you do now?

You don't need to wait for awareness campaigns. Here's a short checklist you can finish in an evening.

1. List every policy you hold, with its cover amount and yearly premium.
2. Add up your loans, such as a personal loan or home loan.
3. Work out cover of 10 to 15 times your yearly income.
4. Compare the gap between what you hold and what you need.
5. Ask for clear answers on cost, exclusions and claim steps before you sign.

Also check that any agent or insurer is genuine. The insurance regulator IRDAI publishes details on its website. For more stories like this, visit our news hub.

Don't buy just because someone is pushing hard. A policy you don't understand can fail you when your family needs it most. Take your time, read the terms and buy what fits.

Frequently asked questions

What is a push product?

It's a product that sellers must actively offer, because buyers don't usually ask for it. Insurance has long been sold this way in India.

Will this change my premium or policy?

No. The comment, as reported by Moneycontrol.com, is a view on awareness. It doesn't change any premium, rule or policy term.

How much life cover do I need?

A common rule of thumb is 10 to 15 times your yearly income. Add your loans on top. Your own needs may differ, so check with a trusted adviser.