Indians turn towards insurance due to the impact of pandemic

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Non-discretionary spending has decreased, yet saving for a family’s financial future remains a top priority amid the pandemic.

Indians learned new lessons about health and wealth amid the pandemic. It was not only important to create physical immunity, but also financial immunity.

Getting immunized against COVID-19, expanding insurance coverage, reducing discretionary expenditure, saving emergency cash, and so on. These are just a few of the actions that Indians have taken to strengthen their financial security.

To better understand these tendencies, SBI Life Insurance conducted the Financial Immunity Survey 2.0. Financial immunity, according to 57 percent of study respondents, is linked to sustaining financial stability for oneself and one’s family. Insurance is viewed as an extremely important aspect of financial planning by 78 percent of Indians.

According to the poll, Indians save half of their income for financial security through savings, investments, and insurance.

According to the poll, 56 percent of Indians have built up emergency finances and 53 percent have purchased life and health insurance since the outbreak.

Furthermore, since January 2021, three out of four Indians have grown their savings. Even though the third wave has arrived, 56 percent of Indians will use the accrued funds to purchase life insurance.

The coronavirus outbreak played a significant role in this shift in behavior. Millions of people became ill, numerous people died, and hospitalizations resulted in rising expenditures. Indians realized they needed to be active and establish physical and financial immunity to have a secure future.

Job losses occurred as a result of the prolonged lockdown, companies implemented salary cuts, and Indians needed to get their finances in order. Individuals who had already obtained insurance policies were in a better position to deal with the situation because their policy claims covered the expenditures.

Building a reasonable corpus was not enough to achieve financial insulation; it also required revenue from many sources. Building a sufficient corpus to improve finances necessitated insurance purchases as well.

People’s ability to spend was harmed as a result of the pandemic. According to a survey conducted by SBI Life, 64% of Indians reported that their previously defined milestones had been impacted.

This indicated either a lack of financial preparedness or that it had been harmed as a result of the unexpected catastrophe.

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