TomorrowMakers

A look at the findings of the India Protection Quotient survey

Womens Life Insurance Ownership

Max Life Insurance has been conducting an annual survey in partnership with Kantar for the last five years. The India Protection Quotient Survey (IPQ) is steadily becoming a dependable marker of financial preparedness in India. Starting from 2019, the survey has documented India’s rise in financial protection parameters over the years. In 2019, it assigned a Protection Quotient of 35 for India as a whole. This year, the survey has found out that India has climbed 8 points to reach a Protection Quotient of 43. Here are a few interesting observations made by the insurance survey.

Also Read: LIC’s new pension plus scheme: Check features, benefits, charges and eligibility criteria

The India Protection Quotient Survey (IPQ) Snapshots

In the last five years, the awareness and knowledge index on life insurance products has increased from 39 to 57. In the IPQ 2023 survey, the life insurance ownership levels were found to be 73%, an increase of 800 bps. The security level was noted as 63%.

Life insurance ownership was marked at 73%, with investment in diverse insurance products across the term, market-linked and savings plans. Awareness percentage in term stood at 64%, at 66% in savings and 42% in market-linked products. 

While purchasing term plans, premium stood out to be the most important parameter, followed by the sum assured, flexibility and add-on benefits. A higher premium was also found to be a main deterrent as people try to purchase life insurance term plans, followed by the need for medical tests, concern wastage of money, existing coverage, negative feedback etc.

As against the national protection index of 43, men scored 44 while women scored 40. Men also scored high in the knowledge index, i.e. 60 compared to 51 in women. Life insurance ownership saw a marked improvement among women in India. From a 6% difference between men and women, this year there is a 3% difference between the two – at 74% and 71%.

The protection quotient among salaried individuals increased by 10 in the last five years to reach 48 now. Self-employed fare a little poorly at 42%, not increasing much over the years. Term insurance plan ownership increased among the salaried class from 71% to 81% in the last five years of the survey. This has declined from 43% to 41% in the case of the self-employed class. 

Also Read: Looking to invest in term insurance: Zero cost term plan can be the right choice for you

One of the heartening signs coming out of the survey is the increased coverage and understanding of the life insurance sector among women. Apart from the increased Protection Quotient for women and knowledge index, women have gotten noticeably closer to male policyholders in terms of life insurance ownership. 

Notably, this survey is conducted in 25 urban centres, including six metros, nine Tier-I cities and ten Tier-II cities across India. This combines to provide a reliable picture of the insurance industry landscape in Urban India.

Also Read: What is the difference between participating and non-participating life insurance

Source

https://www.maxlifeinsurance.com

https://www.livemint.com

https://www.indiatoday.in

Max Life Insurance has been conducting an annual survey in partnership with Kantar for the last five years. The India Protection Quotient Survey (IPQ) is steadily becoming a dependable marker of financial preparedness in India. Starting from 2019, the survey has documented India’s rise in financial protection parameters over the years. In 2019, it assigned a Protection Quotient of 35 for India as a whole. This year, the survey has found out that India has climbed 8 points to reach a Protection Quotient of 43. Here are a few interesting observations made by the insurance survey.

Also Read: LIC’s new pension plus scheme: Check features, benefits, charges and eligibility criteria

The India Protection Quotient Survey (IPQ) Snapshots

In the last five years, the awareness and knowledge index on life insurance products has increased from 39 to 57. In the IPQ 2023 survey, the life insurance ownership levels were found to be 73%, an increase of 800 bps. The security level was noted as 63%.

Life insurance ownership was marked at 73%, with investment in diverse insurance products across the term, market-linked and savings plans. Awareness percentage in term stood at 64%, at 66% in savings and 42% in market-linked products. 

While purchasing term plans, premium stood out to be the most important parameter, followed by the sum assured, flexibility and add-on benefits. A higher premium was also found to be a main deterrent as people try to purchase life insurance term plans, followed by the need for medical tests, concern wastage of money, existing coverage, negative feedback etc.

As against the national protection index of 43, men scored 44 while women scored 40. Men also scored high in the knowledge index, i.e. 60 compared to 51 in women. Life insurance ownership saw a marked improvement among women in India. From a 6% difference between men and women, this year there is a 3% difference between the two – at 74% and 71%.

The protection quotient among salaried individuals increased by 10 in the last five years to reach 48 now. Self-employed fare a little poorly at 42%, not increasing much over the years. Term insurance plan ownership increased among the salaried class from 71% to 81% in the last five years of the survey. This has declined from 43% to 41% in the case of the self-employed class. 

Also Read: Looking to invest in term insurance: Zero cost term plan can be the right choice for you

One of the heartening signs coming out of the survey is the increased coverage and understanding of the life insurance sector among women. Apart from the increased Protection Quotient for women and knowledge index, women have gotten noticeably closer to male policyholders in terms of life insurance ownership. 

Notably, this survey is conducted in 25 urban centres, including six metros, nine Tier-I cities and ten Tier-II cities across India. This combines to provide a reliable picture of the insurance industry landscape in Urban India.

Also Read: What is the difference between participating and non-participating life insurance

Source

https://www.maxlifeinsurance.com

https://www.livemint.com

https://www.indiatoday.in