New Delhi: Max Life Insurance Company Limited (Max Life) ‘s flagship study, the India Protection Quotient Survey (IPQ), in partnership with KANTAR, has revealed insights into the financial preparedness of the LGBTQIA+ community in India from the perspective of life insurance.
The ‘One India-Protection for All’ initiative includes the LGBTQIA+ community in a PAN-India survey for the first time to gauge their financial readiness. With an estimated population of 135 million, roughly 10% of India’s total, their financial preferences and challenges are significant.
Scoring a Protection Quotient of 37 points, the LGBTQIA+ community’s financial preparedness is 17 points lower than digitally-savvy urban Indians, who scored 54 points. Despite commendable awareness and proactive engagement in financial planning, only 68% of the LGBTQIA+ community owns life insurance, compared to 80% in the digital cohort.
Prashant Tripathy, CEO and Managing Director of Max Life, emphasized the importance of inclusive financial solutions as India progresses towards a more sustainable future. The India Protection Quotient survey, now inclusive of the LGBTQIA+ community, aims to deepen understanding of financial protection and ensure equitable access to security for all Indians. Ramkrishna Sinha, Co-Founder of Pride Circle, welcomed this inclusion, noting its significance in identifying and addressing the challenges faced by the LGBTQIA+ community. Both affirm their commitment to enhancing financial well-being and inclusivity.
Awareness, Ownership and Barriers of the Indian LGBTQIA+ Community
The LGBTQIA+ community shows strong awareness of life insurance, with 82% aware of Term Life Insurance and 88% of Savings Life Insurance. Despite this, high premiums (35%) and a preference for health insurance (48%) are significant barriers to adoption. Over 80% nominate parents in their policies, contrasting with the national average of 15%-25%. While awareness of Term products is high, ownership lags behind the digital audience. There’s room for improvement in educating about ULIPs and market-linked products.
Concerns and attitude towards financial prudence
LGBTQIA+ respondents show a keen awareness of financial challenges like medical expenses and inflation. Despite this, 9 in 10 prioritize saving over spending, displaying a forward-thinking attitude towards financial security. They allocate 30% of their income to savings, slightly less than the digital respondents (36%). However, they allocate more to luxury (19% vs. 14%) and basic expenses (33% vs. 28%) than the digital cohort.
Preference of Life Insurance Players
The LGBTQIA+ community overwhelmingly favours private life insurance companies, with nearly 80% expressing a preference, compared to 40% of IPQ digital respondents. They heavily rely on LGBTQIA+ support groups and influencers from the community when making financial decisions.
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Published: 30 May 2024, 12:30 PM IST
