Finance
By: Shree1news, 28 FEB 2021
Insurance has turn out to be the most-preferred financial product to protect the family against health emergencies post the COVID-19 pandemic with more individuals inclined to invest in insurance products in the next six months, based on a survey from Tata AIA Life Insurance.
In keeping with a consumer confidence survey on the impact of COVID-19 commissioned by research agency Nielsen, life insurance turned out to be the most preferred financial tool driven by the need to secure a family’s future financially and the concern around medical emergencies.
The survey also discovered that most consumers want to buy life insurance in the next six months as a part of their investment plans. The survey carried out on 1,369 respondents throughout 9 centres revealed that in the course of the pandemic, 51 per cent of the respondents invested in life insurance, whereas 48 per cent invested in health-related insurance solutions, which is higher than other financial asset classes.
More than half of the respondents stated their views towards life insurance have changed positively as a result of pandemic and 49 per cent want to invest in buying a life cover within the next six months and 40 per cent intends to invest in health insurance. The survey stated 30 per cent of the individuals invested in life insurance for the first time through the pandemic, while 26 per cent invested in health-related insurance coverage options for the primary time.
Monetary safety in opposition to medical emergencies and bills has turn out to be the topmost precedence, with as many as 62 per cent mentioning about it and a majority of 84 per cent saying they’re still concerned about self and family due to coronavirus. 61 per cent were worried about themselves/family and their top concern is the economic slowdown.
“Of the respondents concerned about self and family, 50 per cent are worried about mental health because of increased workload due to Covid-19 pandemic. Among female respondents, 55 per cent stated they’re involved about the mental health due to the increased workload during the pandemic. 41 per cent people are buying financial products online more often than before Covid-19 pandemic,” the survey stated.
Among the other asset classes, one-third of the respondents stated they invested in bank or company fixed deposits, and 30 per cent invested in mutual funds, whereas 24 per cent invested in stocks, 17 per cent invested in gold/digital gold.
“Life insurance has clearly emerged as the popular financial asset as per our Covid sentiment study. There’s a distinct shift towards considering life insurance as the primary source of future financial protection, followed by health and wellness solutions. “The survey findings have helped capture and unravel the transition in customer usage and attitude towards life insurance,” stated Venky Iyer, CDO and Head advertising, Tata AIA Life Insurance.
The survey reveals that with changing money needs and priorities, consumers’ monthly allocation in the direction of insurance, savings and investment, has elevated. With much less discretionary spends and more focus in the direction of necessities spending, consumers are motivated to save, and invest extra in life insurance coverage than they were pre-Covid, he noticed. Tata AIA Life stated the motive behind doing the survey was to get a comprehensive understanding about consumers’ usage and attitude pre and post Covid-19 pandemic towards financial instruments and type of life insurance policies.
The survey was conducted on salaried, business and self-employed male and females within the age-group of 25-55 years by computer-aided web interview.
Source:A-N
