As Pride Month unfolds, it's essential to highlight not just the cultural and social strides of the LGBTQIA+ community in India, but also their commendable efforts towards achieving financial security. The latest India Protection Quotient Survey (IPQ) by Max Life Insurance Company Limited, in partnership with KANTAR, provides insightful revelations about the financial preparedness and preferences of this vibrant community.
The survey, under the 'One India-Protection for All' initiative, incorporated responses from the LGBTQIA+ community for the first time, aiming to understand their financial readiness comprehensively. The findings revealed that 99 per cent of the LGBTQIA+ respondents are aware of life insurance products, which is a testament to their financial acumen. However, this high awareness contrasts with an ownership rate of 68 per cent, indicating a gap between knowledge and action. Comparatively, the digital-savvy urban Indian population has an 80 per cent ownership rate.
Financial Preparedness: Protection Quotient
The LGBTQIA+ community scored 37 points on the Protection Quotient, a measure of financial preparedness, falling only 17 points behind digitally-savvy urban Indians who scored 54 points. This difference highlights an area ripe for improvement, despite the community’s proactive engagement in financial planning.
Life Insurance Preferences And Barriers
Awareness of specific life insurance products among the LGBTQIA+ community is high, with 82 per cent being aware of Term Life Insurance and 88 per cent aware of Savings Life Insurance. Despite this, adoption is hindered by several factors. High premiums deter 35 per cent of respondents, and a preference for health insurance, cited by 48 per cent, indicates a prioritisation of immediate health concerns over long-term financial products.
Interestingly, over 80 per cent of LGBTQIA+ individuals nominate their parents as beneficiaries in their life insurance policies, a stark contrast to the national average of 15 - 25 per cent. This choice reflects deep family ties and the community’s inclination towards ensuring parental security.
The survey underscores a forward-thinking attitude among LGBTQIA+ respondents regarding financial security. A remarkable 90 per cent prioritise saving over spending, allocating 30 per cent of their income towards savings. This is slightly lower than the digital respondents' 36 per cent, but it showcases a solid commitment to financial prudence.
In terms of expenditure, the LGBTQIA+ community allocates more towards luxury (19 per cent vs 14 per cent) and basic expenses (33 per cent vs 28 per cent) compared to their digital counterparts. This allocation suggests a balanced approach to enjoying the present while securing the future.
This Pride Month, as we celebrate the progress and resilience of the LGBTQIA+ community, it’s crucial to acknowledge their strides in financial preparedness and the ongoing efforts needed to bridge gaps in financial security.
By prioritising savings, seeking reliable insurance products, and relying on community-driven advice, LGBTQIA+ individuals in India are setting a powerful example of financial foresight. The findings from the IPQ survey should serve as a call to action for financial institutions to enhance their offerings and support mechanisms, ensuring equitable access to financial security for all.