Term insurance is a type of insurance that gives coverage to its insurers at a fixed rate of payment for a limited period. The Max Life India Protection Quotient (IPQ) – Express survey recently surveyed 1864 respondents across the six metros and tier 1and 2 cities and concluded that the term insurance is gaining traction during the coronavirus crisis.
The main reason for this traction is mainly due to the uncertainty existing in this period. People are highly anxious about whether they will be losing their jobs or sudden death of the sole breadwinner of the house. The survey deducted that the security in terms of job, medical, and finance of the family if the sole breadwinner of the house is affected by the disease or lose job suddenly is more important to the people at the present than it was before the COVID era. The term insurance was the most preferred insurance among the respondents and the majority of the respondents also believe that this is the time to be more proactive rather than the others when it comes to financial planning.
Some other conclusions from the survey where:
- The term insurance ownership was the highest when compared to different categories of insurance products. 41 percent of respondents from the metro and 37% of the respondents from the Tier 1 cities where having term insurance ownership.
- Among the respondents, 64% of the metros 51% of the Tier 1 respondent’s job security and income is of more concern to them now than it was before.
- More than 50% of respondents in both tier1 and metros were worried about the financial security in absence of the breadwinner now rather than it was before COVID.
- 1 out of 4 respondents took critical illness rider in fear of COVID 19.
- Another reason for anxiety among the respondents was due to the uncertainty due to a shortage of funds if affected by the disease.
MD of Max Life Insurance Prashant Tripathy responding to this said that urban India is facing financial insecurity due to this pandemic and the majority of the households are doing financial planning due to anxiety due to the death or loss of job of the sole breadwinner of the house.
