A vast majority (89%) of Vietnamese people consider life insurance as "highly important in daily life", and they are also getting increasingly interested in financial planning, family protection and preparation for long-term risks, according to the Insurance Association of Vietnam (IAV).
A report released by IAV reveals that life insurance is still largely perceived as a supplementary financial safeguard rather than a core risk-management tool or a long-term investment solution. The findings are based on a survey conducted by market research firm IFM Research, which covered 1,265 respondents in both urban and rural areas.
The survey findings are a part of IAV’s "Public Opinion and Community Engagement Policy Research Quantitative Report". The survey reveals that 89% of respondents say life insurance is highly important in daily life. The figure reached 91% among life insurance owners, 86% among non-life insurance owners, and 91% among life insurance lapsers.
"The findings provide an encouraging signal, confirming that life insurance is increasingly recognised as an important financial solution in people’s lives—not only among existing customers but also among those who have not yet purchased coverage."
The levels of individual understanding of life insurance are quite satisfying, with 58% rating themselves as having a good understanding of life insurance. The proportion was broadly consistent across age groups: 57% among the group aged 22-29 years old, 59% among the group aged 30-40 years old, and 58% among the group aged above 40.
However, the main reasons that life insurance is considered necessary were tied to fundamental household needs. 57% said life insurance helps protect against risks, illness, accidents and death, while 45% highlighted its role in maintaining financial stability and support for the family.
The survey findings show that the main motivations to buy life insurance are risk protection, medical expense coverage and safe savings, while investment considerations remain less important.
Key barriers to life insurance participation included long payment timeline, prioritising other investments, financial difficulties, and a lack of perceived need. Among respondents aged 22-29, the lack of suitable consultation emerged as the biggest obstacle.
Notably, the study found that financial pressure is the leading reason people struggle to maintain long-term contracts. The current average premium stands at around VND1.8m ($68.37m) per month, which remains a significant hurdle when incomes fluctuate or when consumers do not fully understand the value received relative to expectations.
The study found that financial behaviour varies significantly across different life stages. The under-30 group tends to prioritise purchasing major assets, maintaining spending stability and supporting parents. The 30-40 group focuses more on saving for children and long-term investment, while those aged above 40 prioritise retirement savings.
The report also identified clear geographic differences in financial behaviour. Residents in first-tier cities recorded a higher rate of financial planning, reflecting greater initiative and awareness in managing personal finances.