The COVID-19 pandemic created unique circumstances for individuals and households, but also steered most of us towards proactive financial planning and improved health protection. To assess the pulse of urban Indians and their attitude towards financial protection in the backdrop of the pandemic, Max Life Insurance in partnership with KANTAR unveiled findings of the third edition of its flagship survey in the form of 'India Protection Quotient (IPQ) 3.0'. Traced from the beginning of the lockdown in March 2020, to the phased reopening of the sectors, up until the announcement of viable vaccines in December 2020, the survey discovered Urban India's sentiment towards overall financial wellbeing.
On the back of increased awareness and ownership of life insurance, urban India's protection quotient improved from 35 (during pre-Covid times in IPQ 2.0) to 39 now. The knowledge index of life insurance increased by 9 points, whereas life insurance ownership across the country increased from earlier 66% (IPQ 2.0) to 71%. Moreover, term insurance awareness too rose to 59% and consequently improved term ownership which stood at 28%.
Despite this progress, it was found that India continues to feel financially insecure. In particular, financial anxieties related to COVID-19 and ability of current earnings to cover expenses emerged as top concerns for Urban Indians. It is interesting to note that increasing worries and reducing security also pushed Urban Indians to become more proactive about financial planning. It wouldn't be incorrect to conclude that while the country has definitely made strides when it comes to financially guarding oneself from future uncertainties, there is still a long way to go.
Note: IPQ 3.0 comparison with IPQ 2.0 is for 25 cities only (6 metros and 9 Tier 1 and 10 Tier 2 towns)
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