Critical Illness Cover Sees Spike In Demand Post COVID-19

The fight against COVID-19 demands a hygienic lifestyle but the largely mysterious methods of contamination has left us all vulnerable. It is important that we attain a certain level of financial immunity along with physical fitness to face any crisis.

The insurance penetration in India has historically been on the lower side but the pandemic has led to a much better awareness on life, health, critical illness policies and creating a demand for the same.

The recent survey- ‘Understanding consumer attitude towards Financial Immunity’ conducted by SBI Life among 2,400 consumers and across 13 key cities in India has corroborated this spike in the insurance industry.

According to the study, 50 per cent of Indians express that they are not ready to face financial emergencies related to lifestyle diseases and a majority 78 per cent feel that stress and anxiety lead to the lowering of mental and physical immunity.

The major worries of these people were: financial security against critical illnesses, a family member getting infected by any lifestyle disease or COVID and job or income loss.

And to combat these worries, Indians have started looking towards protection plans. The study showed that 80 per cent of the respondents associated life insurance with 'safeguarding the family's future'.

"While, the consumer’s current state of financial preparedness towards any health emergency is inadequate, there is an encouraging newfound awareness on the need to build a robust financial immunity to safeguarded one’s future.” said,  Ravi Krishnamurthy, President – Zone I, SBI Life.

Over 61 per cent of respondents have bought or intend to buy critical illness cover to deal with the rising treatment costs, and to avoid financial pressure.

And also last but not the least, 75 per cent of the respondents who are not having a critical illness cover, expressed a desire to purchase a plan in the next three months.

As the survey shows, the critical illness cover remains one of the most sought after insurance cover amid the pandemic given the deadly nature of the virus.