Tata AIA Life Insurance has surveyed Indians millennials – particularly those between 22 and 35 years of age – and found that they realize the importance of maintaining a healthy savings regime even amid the uncertain environment brought about by COVID-19.
More than 64% of respondents either maintained or increased their savings during the pandemic, with 70% of those between 30 and 35 years of age increasing or maintaining their proportion of savings and 68% of those between 22 and 25 displaying the same behavior.
This indicates responsible financial behavior from an early age, Big News Network reported.
Indian millennials across age bands also believe in planning their own investments rather than relying on others. While one in five respondents between 22 and 25 years of age admitted dependency on their parents in deciding on the right financial investment, 90% of those between 26 and 29 made their own decisions in financial planning and investment. An even bigger percentage (96%) of those between 30 and 35 made their own decisions in financial planning and investment.
Geographically, those in India’s metros showed a higher level of independence, 93% making their own decisions in financial planning. When not making their own financial decisions, only a small percentage of respondents in metro and tier 1 cities relied on financial experts; those in tier 2 relied completely on their parents in such situations.
Despite these figures, only 20% of those between 22 and 25 years of age were aware of life insurance, and even less (19%) of the same age band were aware of health insurance. Those between 30 and 35 were generally more aware, 57% expressing awareness of both life and health insurance.
Forty-three per cent of respondents covered by life insurance believed they were adequately protected. Forty-one per cent said they were unsure they had taken a sufficient policy.
“The survey clearly indicates the need for insurers to work hand in hand with younger consumers to help them understand the level of insurance that they need as they progress through different stages in life,” said Tata AIA executive vice president Venky Iyer. “At the same time, it is important for us to help them appreciate the diverse solutions that life insurance offers across protection, savings, retirement, and wealth generation-oriented offerings, thereby ensuring that they are well secured while they strive to do their best in all walks of life."
