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 flagship study of Max Life Insurance Company (Max Life), the India Protection Quotient Survey (IPQ), in partnership with KANTAR, has revealed insights into the financial preparedness of the LGBTQIA+ community in India from the perspective of life insurance. This pioneering initiative, conducted in partnership with Pride Circle, one of India’s premier Diversity and Inclusion Advisory firms, represents a significant step forward in understanding and addressing the specific financial needs of the diverse community.
Under the vision of ‘One India-Protection for All’, the PAN-India survey includes the LGBTQIA+ community for the first time to understand their financial preparedness.
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.
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. In contrast, the LGBTQIA+ community has displayed a 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.
Prashant Tripathy, ceo and managing director, Max Life said, “Our flagship India Protection Quotient survey 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.”
Ramkrishna Sinha, co-founder, Pride Circle said, “The inclusion of the LGBTQIA+ community in Max Life’s India Protection Quotient study is an important step to uncovering the gaps and challenges faced. We are optimistic that this will lead to enhanced attention, addressing the needs of this community, and a deeper understanding of the importance of life insurance.”
Awareness, Ownership and Barriers of the Indian LGBTQIA+ Community
The LGBTQIA+ community demonstrates exceptional levels of awareness regarding life insurance products, with 82% awareness of Term Life Insurance, and 88% awareness of Savings Life Insurance products. These figures surpass the slightly lower awareness levels (81% and 79% for Term Life Insurance and Savings Life Insurance products, respectively) observed in the digital segment.
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.
Overall, the 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 and attitude towards financial prudence
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.
Preference of Life Insurance Players
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.