Slowly but gradually, we see urban India moving towards proactive financial planning that can avert anxiety and help build resilience.
With the outbreak of the Covid-19 pandemic, urban Indians have become more worried about financial security and are increasing their savings and investments. Savings goals have shifted from education and child marriage to medical expenses and old age, and awareness of term insurance has increased. These were the findings of Max Life’s Third Annual India Protection Quotient Survey.
Increase in the IPQ Urban India’s protection quotient rose to 39, up four notches from last year’s survey; The knowledge index – awareness of life insurance products – rose to 55, an increase of 9 points over the same period. The survey shows significant growth in the knowledge index across all cities, age and gender, highlighting a responsible view of urban India. However, due to uncertain times, the level of financial security and preparedness of urban Indians for the security level has dropped 300 basis points to 57%.
India’s protection quotient is the degree to which Indians feel protected from future uncertainties, on a scale of 0 to 100. This is a proprietary tool developed in partnership with Kantar and based on attitudes, mental preparation for future uncertainties, awareness and ownership. categories of life insurance products (term, endowment and unit-linked insurance).
Prashant Tripathy, Managing Director and CEO of Max Life Insurance, says the idea behind India Protection Quotient, launched three years ago, was to educate Indians about the benefits of financial protection in the contemporary world. “The IPQ 3.0 survey reveals that while the issues related to financial preparedness were magnified during the difficult time of Covid-19, there are long-term lessons to be learned when it comes to dealing with and recognizing the financial protection. Slowly but gradually, we see urban India moving towards proactive financial planning that can avert anxiety and help build resilience.
South India leads South India by area continues to be the most protected with a Protection Quotient of 41, followed by North with 39, West with 38 and East with IPQ of 36. With a Protection Quotient of 43, the subways continued. to feel more financially protected during Covid-19. This was followed by level 1 cities which demonstrated a protection quotient of 38 and level 2 cities of 33. Level 1 cities saw a sharp increase in awareness of life insurance products, 46 to 54, as well as ownership which now stands at 66% compared to 62% previously. Delhi led with a Protection Quotient of 50, a 3 point increase over IPQ 2.0.
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