A recent survey by Max Life Insurance has found that term insurance is the most preferred life insurance category among urban Indians, especially during the current pandemic.
Max Life managing director and CEO Prashant Tripathy said, “Digitally savvy urban India is feeling attitudinally less secure about financial protection in the wake of this crisis.
He said, “As per the survey, an essential today for over 80% of the households is being proactive about financial planning especially with heightened anxieties around unemployment and untimely death of the family breadwinner. Term insurance has emerged as a preferred life insurance category during COVID-19.”
The survey, conducted in association with Kantar Insights South Asia, relate to how protected digitally savvy urban Indians feel with respect to financial security, savings and investments, medical preparedness, major anxieties, and new acceptance levels in an increasingly digital world.
The main findings include:
Half of the respondents feel attitudinally less secure towards financial protection
Unemployment and day to day medical expenses are the main cause of anxiety during COVID-19
41% respondents would purchase term plans due to an increase in COVID-19 spread
Metros are more anxious; for 64% job security/business stability is more of a worry now
Millennials are catching up with non-millennials, however ownership levels still low during COVID-19
Mr Tripathy said, “The fact that this well-heeled segment itself had an overall IPQ score of just 47 (out of 100) shows us the amount of more work that is needed from life insurers. A score upwards of 90 would provide comfort on financial protection to cope with pandemic challenges.” Of the 1864 respondents, 83% had an average household income of $12500 per annum.
Kantar Insights MD and CCO Soumya Mohanty said, “In the wake of the COVID-19 pandemic, people’s attitudes towards savings, investments and the overall idea of financial protection is bound to change.
The survey found that women feel less secure at 47% as compared to men at 53%. The percentage of financial security among millennials and non-millennials was almost the same with 51% and 52% respectively. The survey covered 1864 respondents from across six metros, nine tier-I and 10 tier-II cities.