The annual India Protection Quotient Survey (IPQ) study, co-conducted by Max Life Insurance Company, revealed that 9 in 10 respondents LGBTQIA+ community in India prioritised savings over spending. The main metric of the survey Protection Quotient related to life insurance was at 37 points among the community, 17 points down compared to digitally-savvy urban Indians who scored 54 points. The survey was co-conducted by the marketing data analytics company KANTAR in 25 cities, including urban metros, Tier 1 and Tier 2 cities to shed light on the financial preparedness of the LGBTQIA+ community in India in the context of life insurance. LGBTQIA+ community constitutes around 135 million people, approximately 10 per cent of India's 1.4 billion population.
Though there is a 17-point difference in financial preparedness between the LGBTQIA+ community and urban Indians, the former has a commendable level of awareness and proactive involvement in financial planning. As much as 99 per cent of the LGBTQIA+ community were aware of life insurance products though only 68 per cent owned it. The ownership among urban Indians stood at 80 per cent.
As much as 82 per cent of the LGBTQIA+ community was aware of Term Life Insurance, and 88 per cent showed awareness of Savings Life Insurance products. These figures are higher than 81 per cent and 79 per cent for Term Life Insurance and Savings Life Insurance products, respectively observed in the larger digital segment, a release said.
However, as much as 35 per cent of the community cited high premiums and higher inclination towards health insurance (48 per cent) as top barriers to adopting life insurance offerings. Almost 80 per cent of them have made parents nominees in their life insurance policies, whereas only 15 per cent to 25 per cent of respondents in other segments have parents as nominees. Further, ownership and awareness of ULIPs and market-linked products remain lower within the community.
LGBTQIA+ respondents shared worries related to rising medical expenses, mental health, and inflationary pressures. Despite these challenges, 9 in 10 respondents said they prioritised savings over spending. LGBTQIA+ community saves 30 per cent of their income, less than other respondents who save 36 per cent. LGBTQIA+ community also allocates more to luxury compared to digital respondents, (19 per cent vs 14 per cent) and basic expenses (33 per cent vs 28 per cent).
Prashant Tripathy, CEO and Managing Director, Max Life said, "With the inclusion of the LGBTQIA+ community in this edition of the survey, the India Protection Quotient reaffirms our commitment to diversity, inclusion, and equitable access to financial security for all Indians. ”
