Most people feel secure about financially catering to their children's education, family’s basic needs, and jobs
Only 57 per cent of urban India's group term insurance owners and salaried professionals, who have been offered the cover by their employers, feel the protection is sufficient, revealed a Max Life IPQ 3.0 Survey, conducted by the insurer in partnership with KANTAR.
The survey, however, revealed that 69 per cent of group term life insurance owners were found to be more secure even amidst the pandemic. About 77 per cent of the respondents felt secure about financially catering to their child’s education; 74 per cent felt good about fulfilling the family’s basic needs, and 71 per cent felt financially secure about their jobs or businesses.
In the case of salaried non-group term insurance owners, there was a significant dip in the level of financial protection. The non-group term owners showed financial security levels at an average of 56 per cent and were less secure. Only 62 per cent felt secure about fulfilling the family’s basic needs, 61 per cent felt secure about financially catering to a child’s education, and 59 per cent were secure about their jobs or business.
The survey also showed salaried class outperformed self-employed across protection, knowledge index, and security levels even despite both classes showing progress on this front. The protection index of salaried class increased from 37 last year survey (IPQ 2.0) to 41 now, on a scale of 0-100. The growth for self-employed has been from 35 to 39.
IPQ is an index that has been prepared based on factors like attitudes, mental preparedness around future uncertainties, awareness, and ownership of life insurance product categories of the people surveyed.
The life insurance awareness for the salaried class stood at 59 and resulted in life insurance ownership of 72 per cent. While the same for the self-employed class was at 55, the cohort owned marginally more life insurance at 73 per cent. Despite this, the overall security levels of the self-employed group stood at a lower 57 per cent as compared to 59 per cent of the salaried group.
The study has been conducted in the top 25 urban metros, Tier I, and Tier II cities including cities like Delhi, Kolkata, Lucknow, Patna, Bhubaneshwar, Vizag, and others.