PUNE: In an interesting revelation, 48.16 per cent of the Indian youths consider themselves as financially independent. This was revealed in a survey conducted by Bajaj Allianz Life Insurance on the occasion of the Independence Day.
Around 1,088 persons from across different age groups from across the country were surveyed by Bajaj Allianz between August 11 and 15 this year to understand what people recognise as financial independence and whether life insurance is a contributor to their perception.
The largest representation was from youths aged between 25 years and 35 years followed by those between 35 years and 45 years.
Defining financial independence, officials from the company said, “Financial independence is having sufficient funds to live your life without having to compromise on the quality of life. Financial independence is possible through prudent financial management - fix goals, prioritise expenses and save and invest intelligently, while also protecting your quality of life.”
The survey revealed that 48.16 per cent of the respondents felt that they are financially independent, 24.17 per cent felt that they are not financially independent while 27.67 per cent were found to be unsure. “Financial independence, in the respondents’ view, means having enough money to survive without further income (32.26 pc), savings more than spending, so no worries (31.89 pc), prudent investments in financial instruments (21.69 pc) and paying off all loans (14.15 pc). The respondents prefer mutual funds and fixed deposits over other financial instruments as evident in the composition of their existing financial portfolios,” the survey has revealed.
The survey also found that while 34.19 per cent claim that they would prefer a balanced portfolio comprising of risky, moderately risky and safe instruments for future investments, high returns (50.64 pc) scores over the safety of principal (25.09 pc) as primary expectation from investments. About their perception for insurance as a protection tool, the survey revealed that 69.03 per cent already have an insurance policy.
“Term-life policy is most preferred (65.50 pc) while 37.55 per cent felt that they were insured for the right amount so that their dependents could continue to maintain their standard of living and be financially independent. Similarly, 25.04 per cent of the respondents have a total cover between Rs 10 lakh and Rs 50 lakh under their insurance policies,” the survey found.
MD and CEO, Bajaj Allianz Life Insurance, Tarun Chugh said, “Financial independence forms the basis for the protection of one’s way of life. At every stage in one’s life, it’s best to be prepared for life’s ups and downs. Through this survey, we wanted to refocus on the need for financial independence through a combination of investment and protection, thus making it possible to ‘Jiyo Befikar’.”
Financial independence, in the respondents’ view, means having enough money to survive without further income (32.26 pc), savings more than spending, so no worries (31.89 pc), prudent investments in financial instruments (21.69 pc) and paying off all loans (14.15 pc). The respondents prefer mutual funds and fixed deposits over other financial instruments as evident in the composition of their existing financial portfolios, the survey revealed.