To understand people's attitude towards long-term savings and investments during this period of uncertainty, the Policybazaar.com survey asked people about their intention to invest in various market instruments. 47% of the respondents felt this was a good time to invest to earn good returns. This indicates increasing awareness among people about the dynamics of capital markets like market correction, market cycles and so on.
This online study conducted to understand consumer sentiment towards household finances, investments and insurance during the Covid-19 pandemic surveyed 14,624 Policybazaar.com users.
Further, the survey found that two in three respondents were confident of their household expenses remaining stable and manageable over the next 12 months.
The study found that people seem well in control of their financial health but are extremely worried about the risk to their and family's physical health. As a result, the perception of the importance of health and life insurance is now higher than ever. In fact, 51% of the respondents considered having an insurance cover important while nearly 80% said they were aware of the benefits of insurance especially during a pandemic.
The study claims that insurance has now become a product that consumers are likely to buy without the need for a big sales push. Health insurance purchases doubled between March and May this year compared to the same period in 2019.
15% of the respondents said they were worried about a cash crunch. On the job security front, 19% respondents indicated any anxiety about retaining their employment.
Commenting on the findings, Sarbvir Singh, CEO, Policybazaar.com, said, "During times like these, it is important to understand people's outlook towards personal finances, investment and spending. This study clearly points towards both term life and health insurance starting to become a cornerstone of personal financial planning in times of the Covid-19. The pandemic has definitely accelerated awareness about insurance in India where insurance penetration remains low even today."
