A survey reveals that amid rising disposable income levels and better health, education and housing conditions, as much as 85% of middle income earners in India feel a greater need for additional insurance to protect their lifestyles.
According to the ING Investor Dashboard Survey for the second quarter of 2011, more than 75% of respondents that believe they have less coverage than they require want to purchase an additional insurance policy in the coming 12 months.
The survey reveals that within the Asia-Pacific region, Indians feel that there is a greater need to protect their lifestyle and intend to purchase additional insurance policies in the next 1 year.
Insurance policies with attached savings plans are proving to be the product that attracts the maximum demand.
Priority-wise, within the Asia-Pacific region, Indians attach the highest importance to their children's education after the need to protect family income. Saving for retirement is the third-most important priority for Indians, the survey said.
Due to prevailing high interest rates, the Indian middle class finds fixed deposits their favorite instrument to plan for their child's needs, followed by life insurance policies.
The survey further reveals that parents are starting to save for their child early, with over 45% of the Indians surveyed asserting that they prefer to start saving for their children when they are 0-3 years of age.