The deadly pandemic might have given an existential threat to the entire population, but on the brighter side of the crisis, urban Indian working women emerged more financially resilient than men.
An impressive 69% of working women said they are proactive about financial planning now
The deadly pandemic might have given an existential threat to the entire population, but on the brighter side of the crisis, urban Indian working women emerged more financially resilient than men.
Both awareness and ownership of life and term insurance increased amongst working women over the last year. While working women’s knowledge index (degree to which they’re aware of life insurance products) stood at 55 in comparison to 57 for working men, it improved by an impressive 11 points in comparison to last year (as per IPQ 2.0). Strikingly, working women’s term insurance awareness was also at a higher 64 per cent as compared to working men who displayed lesser term awareness at 62 per cent, according to the survey Max Life India Protection Quotient 3.0.
A combination of increased awareness and ownership registered an increase in their overall protection quotient which stood at 39 for working women now, a significant improvement from 34 as per IPQ 2.0 survey, and almost at par with the protection quotient for working men which stood at 40. It is also worth noting that while a lesser 69 per cent working women-owned life insurance as opposed to 73 per cent working men, the former was found to be more attitudinally secure during COVID-19. 59 per cent of working women compared to 57 per cent working men were found to be financially secure.
The findings also reveal that the financial priorities and anxieties of working women in urban India could be due to fear of infection, the untimely death of the breadwinner, job security among working women’s topmost anxieties in wake of COVID-19.
Amidst total or partial job losses, reduced income levels, and medical expenses, urban Indian working women’s anxiety levels stood at 61 per cent in the backdrop of Covid-19. While this is higher by 8 per cent in comparison to working women’s anxiety levels last year (as per IPQ 2.0), it is at par with the anxiety levels of working men at 61 per cent.
Urban Indian working women prioritise savings and investments; save most for old age security and children’s future.
Savings and investments jointly constituted 52 per cent of income for working women. This was followed by basic expenses which made up 39 per cent of total income and luxury expenses that made up 9 per cent. Against the backdrop of the pandemic, working women’s savings objectives also transitioned. While 56 per cent saved for old age security, 64 per cent save for kid’s education. 39 per cent of working women saved for the untimely death of the breadwinner and 40 per cent saved for medical emergencies.
The pandemic compelled urban Indian working women to be more proactive about financial planning; life insurance purchase intention higher than urban working men.
With a sense of increasing worries and reducing security, IPQ 3.0 saw urban Indian working women becoming more proactive about financial planning.
An impressive 69 per cent of working women said they are proactive about financial planning now; at par with 70 per cent of working men. Consequently, working women’s life insurance purchase intention of 31 per cent was considerably higher in comparison to working men, who displayed a lower purchase intention of 26 per cent.
The study also found that the perception of term insurance as a protection plan was relatively stronger among working women. While 72 per cent of working women were aware that term insurance ensures a family’s future is protected in case of untimely death of the breadwinner, a lesser 69 per cent working men were aware of it.
However, 61 per cent women term insurance owners in urban India feel term plan life cover is insufficient; thereby increasingly prioritising sum assured or life cover as key purchase parameters.