As Covid ebbs, focus shifts to kids, retirement - Times of India

As Covid ebbs, focus shifts to kids, retirement – Times of India


MUMBAI: With the third wave of the pandemic abating and normalcy setting in, urban Indians are reverting to conventional behaviour with priorities shifting to kids’ education and sustaining lifestyles. Covid had seen a shift in focus to financial security for the untimely death of the breadwinner and medical expenses due to infection.
According to the India Protection Quotient survey conducted annually by Max Life Insurance in partnership with Kantar, 79% of respondents felt that the current situation will get better because of vaccination. “People who have taken both doses are feeling more secure than those who have not. This is a big call-out to everybody to get vaccinated,” said Max Life Insurance MD & CEO Prashant Tripathy. The latest survey was conducted between December 10, 2021, and January 14, 2022, with 5,729 respondents across 25 cities.
While the focus has again shifted to savings and investment, there has been a decrease in spending on luxury with the index falling to 15 from 16 last year. Also, there is a reduction in basic expenses with the index falling to 29 from 31. “I think what coronavirus perhaps fundamentally has taught us is we need to be saving and we need to cut down on expenses in luxury,” said Tripathi.
Interestingly, there has not been an overall change in life insurance ownership at 78%. However, policyholders are choosing more diverse plans. There is a greater awareness of the need for protection with 57% saying that term cover is insufficient as against 40% earlier.
“Around 88% of people surveyed said that they want safe products with moderate risks. As you can see, 41% of people want safe products, so they don’t own any risk, and that is why you would have seen guaranteed products selling a bit more. Even those choosing unit-linked products are choosing balanced products rather than pure equity plans,” said Tripathi.
When compared across town classes, tier-2 still lags in term plan adoption. At the same time, there is increased awareness of term insurance and the need for it, which highlights the potential in these markets.


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