The momentum of shopping for life insurance coverage might have slowed down in comparison with the preliminary days of the covid-19 pandemic. However, it stays the highest precedence of those that haven’t bought it but or do not have sufficient cowl, in response to a survey.
Almost half of the respondents in Tata AIA Life Insurance’s Consumer Confidence Survey mentioned they should purchase a life insurance coverage coverage within the subsequent six months. Health was the second on the precedence checklist, with 40% mentioned they might buy medical insurance within the coming months.
The survey reached out to 1,369 respondents throughout 9 centres within the age group 25-55.
Unlike the pre-covid-19 instances, persons are extra inclined to purchase a time period plan than a unit-linked insurance coverage plan or a standard coverage. About 47% mentioned that their views in direction of the time period plan have modified.
During the pandemic, 51% of respondents purchased life insurance coverage, and 48% purchased health-related options. Of the whole who purchased insurance coverage insurance policies, 30% have been first-time patrons of life insurance coverage, and 26% bought well being coverage for the primary time.
The survey additionally appeared on the different investments that respondents have made and plan to make within the subsequent six months. During the pandemic, 33% invested in both financial institution or firm fastened deposits, 30% invested in mutual funds, 24% purchased shares, and 17% bought gold in several kinds.
In the close to time period, 37% of the respondents plan to put money into mutual funds by way of systematic funding plan, 33% in financial institution or firm FDs, 30% in shares, shares and 25% in gold.
“The survey reveals that, with changing money needs and priorities, consumers’ monthly allocation towards insurance, savings and investment, has increased. With less discretionary spends and more focus towards essentials spending, consumers are motivated to save and invest more in life insurance than they were pre-covid-19,” mentioned Venky Iyer, chief distribution officer and head of promoting, Tata AIA Life Insurance.
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