Kathmandu. In Nepal, life insurance was traditionally seen only as a means of transferring death-risk, but in recent times, the attitude of the younger generation has changed drastically, a study has shown.
With the introduction of long-term savings, maturity bonus, and tax exemption in life insurance in the modern market, Nepalese youths in the age group of 18 to 40 years have started looking at it in terms of overall ‘financial value’.
According to a study by researchers Indra Raj Subedi and Sujit Kumar Mohapatra, published recently in the International Journal of Central Education Volume 41, Number 25, 2026, the relationship between attraction to life insurance, financial literacy, and other investment options among Nepali youth has been closely analyzed.
According to a study conducted among 473 young people from seven provinces, conceptual financial value has a strong and positive influence on the decision to buy life insurance. Insurance literacy, financial literacy and awareness about tax exemption have been shown to encourage the desire to buy insurance.
The study saw the highest participation of youths from Bagmati Province (30.0%), Koshi Province (18.0%), Gandaki Province (15.0%), Lumbini (14.0%), Madhes (11.0%), Sudurpaschim (6.6%) and Karnali (5.5%).
The intense desire of the youth to go abroad for foreign employment or study and the attraction of the stock market to systemic investment schemes have been found to have a negative impact on the commitment to long-term life insurance. Young people seem to be more attracted to financial instruments that provide short-term or immediate returns.
According to the study, although Nepali youths are highly proficient in mobile wallet, internet banking, NEPSE digital transactions, basic knowledge related to insurance and risk management is very poor.
The main reason for this is the lack of formal insurance education in the curriculum of schools and universities. In recent times, the Curriculum Development Center has included general introductory information about insurance in the secondary level textbooks.
The study concludes that young people are still under the pressure or influence of agents while buying insurance. Also, the attraction of young people to pursue a professional career as an agent, broker, surveyor or underwriter in the insurance sector is very low and skeptical.
The study highlights the need for a review of insurance policies in emerging markets such as Nepal, effective communication policies by regulators, and inclusion of insurance literacy in educational curriculum.
The research concludes that the scope of life insurance can be broadened if new and flexible insurance products are introduced keeping in mind the cash liquidity needs of the younger generation and changing financial preferences.
