COVID-19 has driven 83% of digitally savvy, urban Indians towards proactive financial planning, shows the Max Life India Protection Quotient- Express’ study.
IPQ Express reveals dominant consumer sentiment in the times of COVID-19 on the back of how protected digitally savvy urban Indians feel with respect to financial security, savings and investments, medical preparedness, key anxieties, and new acceptance levels in an increasingly digital world.
Highlighting the increasing importance of financial protection, the survey says that 83% respondents believe that the situation demands one to be more proactive about financial planning.
Further, the survey shows that shows that millennials are more worried about job and income stability along with inadequate funds in case of critical illness compared to pre covid-19 times. It shows spending priorities have also changed after the pandemic outbreak as half of the income of millennials now goes towards savings and investment rather than other expenses.
The survey reveals the change in objectives of savings. More and more people are now saving for treatment of coronavirus and medical emergencies. Saving for a vacation, buying a car or saving for a kid's marriage are at the bottom of one’s priorities.
In addition, term insurance has become the most preferred life insurance instrument after covid-19 outbreak followed by endowment plans. One trigger for increase in demand for the term plan is the need to have financial protection for self and family with the increasing spread of coronavirus.
However, the survey also lists key barriers to purchasing term insurance purchase. High premiums, policies having too many hidden clauses in terms and conditions, stringent claim settlement process were some of the top reasons for not buying term insurance.
The survey was conducted by Kantar for Max Life Insurance in June-July with a sample size of 1,864 across 25 cities in the country.
Key findings:
- Half of the respondents are feeling attitudinally less secure on financial aspects during these times
- COVID-19 is a key trigger for future purchase of term plans for 41% respondents
- 1 in 4 consumers took COVID-19 / Critical illness rider upon fear of getting infected by coronavirus
- Women feel less financially protected than men
