LGBTQIA+ community prioritises savings over spending, says survey

99% in community aware of life insurance products, says study by Max Life Insurance Company

Max Life Insurance Company Limited (Max Life), in partnership with KANTAR, has released the findings of its India Protection Quotient Survey (IPQ) 6.0. The study highlights that 9 in 10 LGBTQIA+ individuals prioritise savings over spending.

 

Key findings of the survey

 

The survey indicates a Protection Quotient score of 37 for the LGBTQIA+ community, significantly lower than the 54 points scored by “digitally savvy urban Indians”. This 17-point gap underscores a disparity in financial preparedness, but the LGBTQIA+ community shows a 99 per cent awareness of life insurance products.

 

Ownership of life insurance within the LGBTQIA+ community stands at 68 per cent, trailing behind the 80 per cent ownership observed among digitally-savvy urban Indians. This gap highlights a potential area for targeted financial education and outreach.

 

 

Financial awareness and barriers

 

Despite high levels of awareness (82 per cent for Term Life Insurance and 88 per cent for Savings Life Insurance), the LGBTQIA+ community faces barriers in adopting life insurance. High premiums (35 per cent) and a greater focus on health insurance (48 per cent) are primary obstacles. Interestingly, over 80 per cent of respondents have designated parents as nominees in their life insurance policies, compared to 15 per cent-25 per cent in the general population, reflecting unique familial structures and support systems within the community.

 

LGBTQIA+ respondents express significant concerns about their financial vulnerabilities, especially with rising medical costs, mental health needs, and inflationary pressures. Despite these challenges, the community demonstrates a strong commitment to financial discipline. An impressive 90 per cent of respondents prioritise saving over spending, showcasing a proactive approach to securing their financial future. A notable portion of the community allocates a significant share of their income to savings — 30 per cent compared to 36 per cent among digital respondents. However, they also dedicate higher proportions of their income to luxury (19 per cent vs 14 per cent) and basic expenses (33 per cent vs 28 per cent) than their digital counterparts.

 

Preferences in life insurance providers

 

Within the LGBTQIA+ community, nearly 80 per cent expressed preference for private over public insurers. That is compared to 40 per cent among the digitally savvy cohort. The influence of LGBTQIA+ support groups and community influencers plays a significant role in financial decision-making, indicating a trust and reliance on community-based guidance.