The fear-inducing second wave of COVID-19 had Indians take out life and health insurance in droves. A survey by YouGov shows that the two financial instruments were among the most common ones newly taken up by urban Indians between late March and late June 2021. 28% and 25% of respondents, respectively, said that they had started newly investing in either type of insurance during the given time frame.
Low-risk investments through fixed or recurring deposit or mutual funds were also popular during the time period. Fewer Indians newly invested in more speculative assets like stocks, cryptocurrency or gold. 39% of Indians said they wanted to increase investments in the future, while 29% said they wanted to keep them the same.
The investments happened despite – or because – 40% of respondents said their financial situation had worsened previous to the survey. More than half said it would take at least six months for their finances to recover.