Life insurance ownership up significantly among working women: Study

The India Protection Quotient survey by Max Life Insurance Company has found men leading in term insurance plan ownership, and uptake among women also witnessing a sharp increase.

“Beginning with a Protection Quotient of 35 in 2019, India has come a long way. As per the latest edition of the survey, urban India showcased a positive movement, climbing up 8 points on the Protection Quotient to 43 (as per IPQ 5.0) from IPQ 1.0 – signaling steady progress in the country’s overall financial protection levels,» according to the survey conducted in partnership with Kantar.

First launched in 2019, the study was also conducted in the most uncertain and challenging times during the covid-19 pandemic, and has so far reached out to more than 30,000 respondents in seven different surveys.

The survey also revealed that the degree to which urban Indians are aware about life insurance products or the knowledge index moved up from 39 (in IPQ 1.0) in 2019 to 57 and life insurance ownership Levels increased by 800 bps from 2019 (IPQ 1.0) to 73%.

Against the backdrop of a waning pandemic, the survey highlights a massive recovery in Security Levels; it is observed to be steadily coming back to pre-pandemic levels- starting from 66% in IPQ 1.0 to an all-time– low of 57% during the pandemic, and back to 63% in this edition.

According to IPQ 5.0, with respite from health-related worries, urban India has begun reprioritizing investments in savings plans for life insurance showcasing sustained growth in ownership – up from 24% in IPQ 1.0. to 38% in IPQ 5.0, while term plan1 adoption rates have grown ~50% in 5 years.

Prashant Tripathy, Managing Director and CEO, Max Life Insurance said, “We initiated the India Protection Quotient survey five years ago with the endeavor to understand India’s behavior and outlook towards financial protection – an important metric in determining the resilience of the nation. Since then, the India Protection Quotient survey has evolved into a financial health indicator, effectively enabling Max Life and the life insurance sector uncover the pulse of the nation on financial preparedness.»

He further commented, “This year, we see urban India transition to a more secure space, as health anxieties take a backseat. Additionally, while India has begun recognizing the real value of term insurance, ownership remains an area of challenge that the life insurance industry will need to work hard to address. While the current findings of study instill confidence in India’s trajectory towards financial independence, a challenging journey lies ahead of us, one that will be marked by the lessons of the past as well as insights that will shape the future of the country’s life insurance sector.»

India Protection Quotient 5.0: witnessed a marked increase in the Protection Quotient for women, from 36 in IPQ 3.0 to 40 in IPQ 5.0

While men lead in term plan ownership, uptake among women witnessed a sharp increase

While life insurance ownership stood at 74% for men and 71% for women, men continue to take the lead over women in term insurance with 31% ownership. However, women are quickly catching up with heightened awareness of term plans – up from 52% in IPQ 3.0. to 58% coupled with increased term insurance ownership — up from 22% in IPQ 3.0. to 27% in IPQ 5.0.

The Protection Quotient of millennials was at par with non-millennials at 43. Additionally, the awareness of life insurance products was equal between the two cohorts, standing at 57%. As non- millennials transition towards crucial life stages, their focus on financial protection solidifies with life insurance ownership rate shooting up from 73% to 77% — overtaking adoption rates of millennials, that stood at 71%.

IPQ 5.0. reveals that almost 50% of urban Indians are still not confident about the adequacy of their term insurance coverage when it comes to protecting their loved ones from life’s uncertainties. However, feeling of insufficiency is observed to be the lowest in 5 years on the back of rising Security Levels.

For the first time in IPQ’s history of five years, Tier 1 cities demonstrate the highest term insurance ownership at 38%, an impressive 8%-point increase from IPQ 3.0, outpacing the term ownership rate of metros that stood at 29%. Metro term ownership witnessed a decline of 4%-point from IPQ 3.0 – indicating room for improvement.

The study is conducted in top 25 Urban metro, Tier 1 and Tier 2 cities; hence, its findings are representative of metro, Tier 1 and Tier 2 cities of Urban India only.

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