Record High in Life Insurance Ownership
A recent survey conducted by Axis Max Life Insurance has revealed that life insurance ownership in urban India has reached an unprecedented 78%, marking a significant shift in financial protection awareness. The seventh edition of the Axis Max Life India Protection Quotient (IPQ) survey, conducted in partnership with Kantar across 25 Indian cities, tapped into the financial protection perspectives of 6,360 households.
Changing Perceptions of Life Insurance
The survey findings indicate a substantial change in how people perceive life insurance. According to Prashant Tripathy, CEO and Managing Director of Axis Max Life Insurance, “People no longer view life insurance merely as a tax-saving investment; instead, they see it as essential coverage.” This is evident in the fact that ‘cover’ has overtaken ‘premium’ as the top priority in term insurance purchases for the first time in seven years.
Key Findings of the Survey
- Three out of four urban respondents now prioritize adequate coverage over affordability.
- The India Protection Quotient (IPQ) has reached a new high of 48 in FY25.
- The knowledge index rose to 63, up from 61 in the previous edition.
Gender Disparity in Financial Protection
Despite the overall positive trend, the survey highlighted a concerning gender gap in financial protection. While working men’s protection quotient rose from 47 to 50, women’s scores remained stagnant at 48. Women reported higher anxieties regarding inflation, healthcare costs, and the loss of the primary earner. Tripathy emphasized the need for a “focused, gender-sensitive push” in product design, distribution, and education.
Term Insurance Awareness and Challenges
The survey noted an increase in term insurance awareness (from 70% to 74%) and ownership (from 31% to 34%). However, cost remains a significant barrier, with 25% of respondents citing affordability as the primary reason for not purchasing term insurance. The trend towards online term plan purchases is gaining momentum, with 22% of respondents buying online, up from 18% in the previous survey.
Demographic Insights
- GenZ has emerged as a financially conscious cohort with a protection quotient of 41 and two in three owning life insurance.
- Salaried individuals continue to lead with the highest protection quotient of 52.
- South India continues to lead in protection, while West India saw a record high 41% term plan ownership.
The survey’s findings underscore the progress made in financial protection awareness while highlighting the need to address existing gaps, particularly among women and the self-employed.
