Over 90% of Indians believe that Health and Term insurance is important for their financial safety and mental wellbeing. They agree that it is very important to stay protected, especially, fearing the Covid situation. The findings are a part of the annual survey conducted by Policybazaar.com to celebrate National Insurance Awareness Day: 2021.
“During unprecedented times like these, it is important to understand our customer’s outlook towards insurance products and serve them with the right solutions specific to their needs. A well-insured nation is always better equipped to deal with economic uncertainties. It is evident that protection products are becoming the foundation of financial planning especially considering the impact of COVID-19. The pandemic has definitely accelerated awareness around insurance and the quest to buy the right insurance plans”, said Sarbvir Singh, CEO, Policybazaar.com.
The survey was conducted to understand the impact of COVID-19 on insurance awareness and purchase behaviour of Indians in the last 15 months. Policybazaar surveyed over 6,000 existing customers who bought Term, Health, and Motor insurance from the platform. The survey was fielded to respondents between June 18th – 21 st , 2021.
When it comes to life insurance, the findings revealed over 3/4 th respondents purchased term insurance in the last 2 years owing to Covid fear. Nearly 9 in 10 respondents who purchased a term plan considered it as a means to protect their family’s financial future and not merely as a tax saving instrument (2%). The survey findings denote that 72% respondents bought their first term plan online from Policybazaar. When choosing the sum assured 60% Indians bought a term plan cover ranging between Rs. 50 Lakh – Rs. 1 Crore, 25% chose a cover above Rs. 1 Crore.
Ideally, the sum assured of your term plan should be 15 – 20 times your annual income and the policy tenure be until your retirement age. Interestingly, 6 out of 10 Indians buy a term plan with cover up to 61 – 81 years of age – the most common retirement age in India.