Only 54% of Chennai residents feel financially secure during pandemic, says study
The study revealed that Chennai remained relatively less proactive about financial planning, overall health and fitness
CHENNAI: Only 54% of Chennaites feel financially secure when it comes to jobs and business following the outbreak of the COVID-19 pandemic, according to a survey done by Max Life India Protection Quotient 3.0 in partnership with Kantar, a leading data, insights and consulting company.
The survey revealed that amidst total or partial job losses, reduced income levels and escalated medical expenses, only 44% Chennaites feel financially secure about fulfilling the family’s basic needs.
On the back of health and financial challenges, the survey revealed that anxiety levels of Chennai residents stood at 62%, lower in comparison to Bengaluru (64%) and Mumbai (64%).
‘Financial independence post retirement’ was the topmost anxiety for 72% in Chennai. ‘Financial security of family in the absence of breadwinner’, ‘inadequacy of funds in case of critical illness’ and ‘sustaining lifestyle and expenses with current earnings’ were the three other top anxieties, it was found.
The study revealed that Chennai remained relatively less proactive about financial planning, overall health and fitness. In the backdrop of Covid-19, only 62% Chennaites said that they are proactive about financial planning – considerably less than 70% in Bengaluru and 77% in Delhi. Furthermore, only 64% said that they believe in saving more than spending.
Despite the pandemic having medical implications, the city’s residents are not actively prioritizing health and fitness, reveals the study. “Only 60% of Chennaites, as opposed to 80% Bangaloreans and 89% Mumbaikars actively look for products that will improve immunity whereas only 63% pay attention to health and fitness regime,” the survey states.
The study states that among all metros, Chennai’s term insurance (life insurance that provides coverage at a fixed rate of payments for a limited period of time), awareness and term ownership stood the second highest. The city’s term awareness level of 73% increased significantly from the earlier 64%. The same was at par with term insurance level of Delhi, and higher in comparison to Kolkata (41%), Hyderabad (54%) and Bengaluru (64%).
On the other hand, the city’s term insurance ownership also remained the second highest across metros. It increased to 42%, second only to term ownership levels of Delhi at 44%. “This indicates that while urban Chennai is increasingly waking up to the challenges of the pandemic and realizing the need for greater financial protection, there is scope for great term insurance uptake,” the study added.
Around 4,357 respondents were surveyed via face-to-face interviews with adequate safety measures across 25 cities comprising six metros, nine Tier I and 10 Tier II cities.