78% feel insurance is important part of fin planning: Survey
Consequently, 46 per cent purchased health insurance and 44 per cent purchased life insurance for the first time during Covid-19
image for illustrative purpose
Top 3 worries of Indians
• 59 per cent rising medical/ treatment cost
• 59 per cent instability of jobs
• 58 per cent concerns around health of self/family members
Hyderabad SBI Life Insurance, one of the most trusted private life insurers in India, unveiled consumer study, The Financial Immunity Survey 2.0, providing deep insights into consumers' evolving behaviour towards financial preparedness in the post Covid world in collaboration with Nielsen Company, covering 5,000 respondents across 28 key cities of India.
AVS Siva Rama Krishna, President, Zone II, SBI Life Insurance said, "The pandemic has impacted various aspects of our lives where changing risk perception and risk attitudes have led to formation of new habits amongst the consumers, their affinity towards financial planning is a mirror to that. SBI Life's Financial Immunity Survey 2.0, attempts to gain a better understanding of the driving factors behind this shift and what has changed in terms of consumer behaviour towards both physical and financial immunity, especially in a post-Covid world."
Amid pandemic, majority of Indians are confident that the country would tide over the situation or a possible 3rd wave, where 80 per cent of the Indians strongly feel prepared towards physical immunity by vaccinating with either one or two doses. But 38 per cent of the Indians feel that the situation could worsen over next three months and their top three worries attributed to (1) Rising medical/ treatment cost (2) Instability of Jobs (3) concerns around Health of family/self.
The survey further states, 79 per cent of the Indians faced income reduction and 1/3rd are still facing reduced income where 64 per cent of the Indians feel that their key life milestones like accumulating savings, leisure traveling, child education were impacted.
With Covid-19, the importance of financial immunity has increased and 57 per cent of the Indians intend to maintain 'Financial Security and Stability of self/ family' where 78 per cent Indians feel that life insurance is extremely important in overall financial planning process. Realising this importance of insurance, 46 per cent purchased Health insurance and 44 per cent purchased Life insurance for the first time during Covid-19 but under insured with an insurance cover 3.8 times instead of recommended 10X to 25X of their annual income.
