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| Capitalstars Investment Advisor |
The survey found that as compared to the national average of 47%, awareness of term products is comparatively higher at 50% among millennials parents.
India is an under-insured country, however, more and more young people are becoming aware of the importance of insurance. A recent survey conducted by Max Life Insurance in association with Kantar IMRB found that while getting a lump sum at a future date for their child's education was a term insurance buying trigger for about 44 percent urban Indians, at 48 percent it was the biggest trigger for millennials with kids.
It also found that as compared to the national average of 47 percent, awareness of term products is a comparatively higher at 50 percent among millennials parents, a press release by Max Life Insurance stated.
The survey
The survey had a sample size of 4,566 respondents and was administered to respondents of different demographics and age groups across 15 metropolitan and tier 1 cities in India. The survey primarily measured their level of knowledge and ownership of various life insurance products, degree of term insurance preference and penetration, primary fears and triggers to life insurance purchase, preferred channel of policy purchase, and roadblocks to owning life insurance.
Awareness of term insurance products
"There are several key milestones in parents' life that they go through which children are growing, right from nurturing values, to good quality education in the early days and then to supporting their higher education and matrimonial plans. To achieve such milestones without any hassles, it is important to undertake financial planning judiciously. It is reassuring to see that young India understands the need for owning term insurance to secure their family's future. Birth of a child is the biggest trigger for millennials to buy term insurance, which confirms that children continue to be the fulcrum of financial planning for Indian households," Aalok Bhan, Director, and Chief Marketing Officer, Max Life.
Families with children consider term insurance their first preference
About 36 percent of families with children consider term insurance as their first choice when it comes to buying life insurance. "This indicates that millennial parents understand the risks of life and the need to protect against those risks by buying a term plan," the release stated.
At 52 percent, term insurance awareness among families with children is almost twice as compared to the awareness levels of 29 percent, among families without children. Understandably then families with children have a higher term insurance ownership of 24 percent, while only 12 percent of families without children own term insurance.
Millennial parents' priorities
The survey found that while nearly half of urban Indian millennials in the age group of 25 - 35 years believe in spending more on travel/ luxury and are not even thinking about financially protecting their families, millennials with kids are far more conscious of creating a corpus to support life stage goals related to their children. It found that 79 percent of millennial parents save for their kid's education while 55 percent save for their kids' marriage.
With regards to their own retirement planning, almost 54 percent India saves for old age security and retirement, millennials with kids prioritize savings for goals related to their children over their own selves with 50 percent of them saving for old age security.
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