A recent survey has revealed the Indian LGBTQIA+ community’s financial goals and preparedness in the current market from the perspective of life insurance. The survey, India Protection Quotient Survey (IPQ), has been conducted by Max Life Insurance Company Limited (Max Life) in partnership with KANTAR.
The survey stated that with a population estimated to be around 135 million people, or around 10% of India’s 1.4 billion population, the LGBTQIA+ community represents a significant segment whose financial preferences and challenges cannot be overlooked. 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.
The survey noted that with a Protection Quotient of 37 points, the LGBTQIA+ community exhibited a 17-point difference in financial preparedness, as compared to the digitally-savvy urban Indian at 54 points.
The individuals interviewed during the survey showed commendable level of awareness, understanding, and proactive engagement in financial planning, with 99% individuals aware of life insurance products. Despite high awareness, ownership of life insurance in the community stands at 68%, as opposed to 80% ownership in the digital cohort.
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.
However, high premiums (35%) and a higher inclination towards health insurance (48%) remain the top barriers for the community to adopt life insurance offerings. Additionally, more than 80% of the respondents have made parents nominees in their life insurance policies, in stark contrast to overall India, where 15%-25% of respondents have parents as nominees.
The survey noted the overall cohort remains acutely aware of Term products but lags in ownership compared to the digital audience. Further, ownership and awareness of ULIPs and market-linked products remain lower within the community, presenting an opportunity for focused education and outreach efforts for the industry.
Concerns
Concerns voiced by LGBTQIA+ respondents underscore their high awareness of financial vulnerabilities, particularly regarding rising medical expenses, mental health, and inflationary pressures.
Despite these challenges, the community remains steadfast in their commitment to financial discipline, with 9 in 10 respondents prioritizing savings over spending, embodying a forward-thinking approach to securing their financial future.
A significant portion of the community allocates a substantial portion of their income towards savings – 30% as compared to 36% by the digital respondents, albeit with higher proportions dedicated to luxury (19% vs. 14%) and basic expenses (33% vs. 28%)as compared to the digital cohort.
Life Insurance
The LGBTQIA+ community has a strong preference for private companies in the life insurance sector, with close to 80% expressing an inclination, while only 40% of the IPQ digital respondents favour private companies.
The respondents also revealed that they are highly influenced by LGBTQIA+ support groups and forums, believing and following influencers from the community while making financial decisions.
“At the heart of this mission is our flagship India Protection Quotient survey, which not only measures awareness levels of life insurance but also strives to achieve a deeper, more unbiased understanding of financial protection. This year, with the inclusion of the LGBTQIA+ community, the India Protection Quotient reaffirms our commitment to diversity, inclusion, and equitable access to financial security for all Indians. We are dedicated to ensuring that everyone has the protection they deserve, driving forward a vision where every life is valued and safeguarded,” said Prashant Tripathy, CEO and Managing Director, Max Life.