Because of the pandemic, there has been an increased focus on savings and investments that could help combat unforeseen circumstances along with ensuring comprehensive financial protection
NEW DELHI:Majority of urban salaried professionals feel that life insurance policy offered by an employer is an important factor in deciding on taking up a job with a company, with many of the view that employers should offer insurance advice for better planning of personal finances. These are the key findings of the third edition of the Max Life’s India Protection Quotient survey.
As per the survey, group term life owners--salaried professionals who own term life insurance offered by their employer--were found to be more financially secure than salaried non-group term owners, and term insurance ownership among the self-employed was observed to be increasing during the pandemic.
About 65% respondents of group term life cover owners said life insurance cover offered by the employer was an important factor to decide on their employment with a company. Moreover, 56% salaried group term life cover owners and 53% salaried non group term life cover owners said employers should offer life insurance advice to plan personal finances better, as per the survey.
The study was conducted in top 25 metros, tier I and tier II cities during November-December, and 1,136 salaried non-group term life owners and 358 group term life owners participated.
“Faced with the possibility of a job loss, income decline and potential loss of health care, the covid-19 pandemic heightened employees’ financial vulnerabilities. As a result, there was an increased focus towards savings and investments that could help combat unforeseen circumstances along with ensuring comprehensive financial protection. The insights also point towards the need for employers to assume a key role in helping their employees build a long-term financial resilience over the course of their employment," said Aalok Bhan, director and chief marketing officer, Max Life.
The survey revealed that there was an increase in financial protection levels of salaried and self-employed classes. Term insurance awareness among the salaried class increased to 62% in 202 from 57% last year, while term insurance awareness of self-employed people jumped to 63% from 51%. Term insurance ownership rose to 28% from 26% for salaried respondents and to 31% from 24% for self-employed.
However, only 57% of group term life insurance cover owners felt that life cover offered by an employer was sufficient. “Given the heightened awareness of financial protection, only 57% group term owners felt their group term life insurance cover (offered by the employer) was sufficient whereas 37% group term life cover owners said it was only somewhat sufficient and 4% said it was not sufficient at all," the company said in a release.