57% feel their life insurance cover is insufficient: Survey – Economic Times

With Covid fears down, people focus on kids’ goals, buying term plans, as per the latest Max Life IPQ 4.0 survey.

India Protection Quotient has risen

*IPQ is the degree to which Indians feel protected from future uncertainties on a scale of 0 to 100, based on attitudes, mental preparedness about future uncertainties, awareness and ownership of life insurance products, including term, endowment and Ulips.

Life insurance ownership

*Ownership Level is the degree to which Indians own life insurance, on a scale of 0 to 100.

Knowledge index

*Knowledge Index is the degree to which Indians are aware of life insurance products, on a scale of 0 to 100.

Security level

*Security level is the degree to which Indians feel financially secure and are prepared on a scale of 0 to 100.

Life insurance ownership flat at 78%, but more people are buying term plans

Term Plans

Traditional (Endowment)

Market Linked (Ulips)

More people now feel they have inadequate cover

Term plan is sufficient

Term plan is insufficient

Kids’ goals top priorities for investing

Kid’s education 48%
Medical emergency 43%
Old age security/retirement 39%
Kid’s marriage 31%

Premium top criterion for buying term plans

Premium: 71%
Cover: 68%
Features like flexibility/customisation: 65%
Riders/add-on benefits: 52%

Sharp rise in women’s security level; at par with men

Security level women

Security level men

Knowledge index

87% opt for safe investing

Only marketlinked products: 11%
Only safe products: 41%
Mix of safe & marketlinked products: 46%

Tier 2 cities lag in term plan adoption

Metro

Conversion ratio: 60
Ownership: 48%

Tier 1

Conversion ratio: 56
Ownership: 44%

Tier 2

Conversion ratio: 46
Ownership: 35%

Source: The India Protection Quotient 4.0 survey was conducted by Max Life Insurance and Kantar among 5,729 people in 25 cities. All figures may not add up to 100% due to multiple choices