India: Urbanites have grossly inadequate protection quotient
Source: Asia Insurance Review | Apr 2019
Indians are grossly unprepared to cope with the financial instability caused by life events, according to a survey, ‘India Protection Quotient (IPQ)’, carried out by Max Life Insurance, one of India’s leading private life insurers.
The findings show that urban India has a protection quotient of 35 on a scale of 1-100. Delhi is the city that feels most protected with an IPQ of 46.
The survey attracted 4,566 respondents, of different demographics and age groups in 15 metropolitan and tier 1 cities.
While 65% of respondents own life insurance, the percentage of owners of term insurance products is 21%, a state of affairs attributed to lack of awareness of term insurance.
Of those who own term insurance, as high as 57% are unaware of the sum assured. In addition, 70% perceive that term insurance is only for the breadwinner of the family.
More than half of the respondents (53%) surveyed feel that their cover is insufficient. Only one in 10 term buyers buy a critical illness rider. Eigthy per cent of urban Indians are unaware of the cost of treatments of critical illnesses. A