Many Indians prioritize children’s education and marriage over retirement and around 25 per cent of urban Indians do not have life insurance, according to the Max Life IPQ 6 survey released recently. The study was conducted in 25 urban centres (6 metros, 9 Tier 1 and 10 Tier 2 cities), including Delhi, Kolkata, Mumbai, Bengaluru, Chennai, Hyderabad, Ahmedabad, Bhopal, Lucknow, Pune, Jaipur, etc., covering 4,700 respondents.

The Max Life IPQ 6 survey, which interviewed millennials, Gen-Z, and women, found that 3 out of 4 urban families now have life insurance products. The protection index, a measure of financial security levels, changing patterns in savings and investments, investors’ anxieties, and triggers of financial protection, was at an all-time high of 45 compared to 43 in the previous survey. The index is measured on a scale of 0-100, and reflects people’s financial protection awareness.

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The study shows an upward trend in the knowledge level and possession of life insurance compared to the previous survey, from 57 to 61 and 73 to 75, respectively. The India Protection Index grew 10-point increase from 35 to 45 over the last five years.

The study found that millennials are ready for retirement, but Gen-Z is the least financially secure due to their lower insurance ownership. At the same time, the protection quotient for women has risen to 47 points, reflecting 8 out of 10 working women investing in insurance.

According to the report, life insurance ownership has increased to 75 per cent, and Knowledge Index rose more than 50 per cent.

However, the gap between metro cities and Tier 1 and 2 cities protection index is not the same. It is around 49 points in metros, 45 points in Tier 1, and 36 points in Tier 2 cities, the difference is due to the challenges in life insurance awareness and accessibility in Tier 2 cities.

While two-thirds of the urban population showed concerns about the rising costs of healthcare, they give more importance to children’s education and their marriage than their own retirement planning. The long-term goal of retirement planning is still taking a back seat.

Interestingly, the survey finding shows that people prefer health insurance over life insurance, which is 1 out of 4, indicating the mindset, is probably due to the pandemic.

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The protection quotient for tech-savvy people is higher than for those lacking on this front. A significant increase is observed in the self-employed people compared to the previous survey. Urban Indians prefer taking riders and term insurance, and only a few prefer buying ULIPs.

The self-employed people’s knowledge level at 64 points shows an increase of 3 points from the previous survey. The insurance ownership level also rose from 73 per cent to 77 per cent.

The report reveals the change in financial behavior, savings patterns, and acceptance of insurance, highlighting people’s financial preparedness and the need to promote insurance awareness.

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