Family's financial future top concern for the consumers followed by protection against health emergencies - Tata AIA Life Survey

Driven by the need to secure family's future financially and concern around medical emergencies, Life Insurance has emerged as the most preferred financial tool, reveals Tata AIA Life Insurance's Consumer Confidence Survey on the impact of COVID-19 Pandemic.

The survey also found that most consumers would buy life insurance in the next six months as a part of their investment allocation.

49 per cent of respondents suggested that they intend to buy Life Insurance in the next six months to ensure the financial security, followed by health insurance at 40 per cent, Mutual Fund SIPs at 37 per cent, Bank/Company FDs at 33 per cent, Equity shares at 30 per cent and Gold/Digital Gold at 25 per cent of those surveyed.

Regarding types of life insurance policies bought by the customers, with strong demand during the COVID-19 Pandemic, Term Insurance has seen significant improvement in purchase intent. 47 per cent of respondents feel that their views towards Term protection solutions have changed positively.

In comparison, 44 per cent of respondents feel that their views towards Endowment solutions have changed positively, and 41 per cent of respondents feel that their views towards ULIPs have changed positively. 23 per cent of respondents plan to invest in pure protection insurance, 28 per cent in Endowment / Money Back policies, and 20 per cent in ULIPs in the next six months.

The survey also reveals that 84 per cent of respondents are concerned about their health and the family members' health due to COVID-19 pandemic. As an influence of COVID-19 pandemic, 71 per cent of the people intend to invest in Health Insurance in the next six months. 67 per cent feel their opinion towards Health insurance/ Mediclaims has changed positively due to COVID-19 pandemic.

During the COVID-19 Pandemic, 51 per cent of respondents invested in Life insurance, and 48 per cent invested in health-related solutions. As for other asset classes, 33 per cent of people have invested in Bank/ company fixed deposits, 30 per cent have invested in Mutual funds, 24 per cent have invested in stocks/ shares, and 17 per cent have invested in gold/ digital gold. During the COVID-19 pandemic, 30 per cent of people invested in Life insurance for the first time, and 26 per cent invested in health-related solutions for the first time.

62 per cent of respondents informed that they are still very concerned about themselves and their families due to COVID-19 pandemic. Of the respondents concerned about self/ family, 50 per cent are worried about mental health due to increased workload due to COVID-19 Pandemic. Among the female respondents, 55 per cent of women said they are concerned about the mental health due to the increased workload during the COVID-19 Pandemic.

"Life Insurance has clearly emerged as the preferred financial asset as per our Covid sentiment study. There is 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," said Venky Iyer, CDO and Head marketing, Tata AIA Life Insurance, commenting on the findings of the survey.

"The survey reveals that, with changing money needs and priorities, consumer's 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," Venky added.

Tata AIA Life commissioned the survey to leading market research agency Nielsen to get a comprehensive understanding of consumers' usage and attitude pre and post COVID-19 Pandemic towards the financial instruments and type of life insurance policies.

The study was administered to a total sample size of 1369 respondents across 9 centres. Salaried, Business and Self-Employed Male and Female in the age group 25-55 were surveyed adopting computer-aided web interview methodology.

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( With inputs from ANI )