India’s Financial Safety Net Is Failing LGBTQIA+ Community, Working Women; Here's Why

Even as awareness around financial security grows in urban India, two groups, namely working women and the LGBTQIA+ community are still slipping through the cracks. The seventh edition of Axis Max Life’s India Protection Quotient (IPQ) study conducted in association with Kantar shows just how far the intent-to-action gap really is.

The survey, which covered over 6,000 households across 25 cities, finds that LGBTQIA+ community scored just 35 on the Protection Quotient scale (0 to 100). That is well below the urban average of 56 among digitally aware individuals. The numbers on insurance ownership mirror that gap: only 66 per cent reported owning life insurance, while just 27 per cent have term plans, the most basic and cost-effective form of protection. In contrast, 82 per cent of other urban Indians surveyed have life insurance and 48 per cent own term plans.

Awareness is lower, too. The Knowledge Index, which tracks understanding of life insurance, stands at 61 among LGBTQIA+ respondents. It’s 74 for their urban counterparts. Add to that a noticeable dip in perceived financial security, from 42 last year to 39 now, and the picture is clear: financial vulnerability is deepening among these groups.

This, despite the fact that the community has historically shown a strong saving instinct. The report notes a decline in proactive financial planning. Everyday concerns like medical expenses, household budgeting, and the fear of losing a breadwinner are becoming more prominent stress points.

Then there’s the gender gap. Working women, who last year matched their male counterparts in Protection Quotient scores, have seen no improvement. Their score remains at 48, while the number for working men has climbed to 50. The study shows women feel less financially secure when it comes to long-term goals like retirement or funding a child’s education. Worries about inflation and healthcare costs weigh more heavily on them too.

It is not that the intent is missing. Both groups show an interest in protecting their future. But intent alone isn’t closing the gap. Access, awareness, and perhaps more representation in how financial products are designed and marketed for them still seem to be falling short.

Commenting on the findings, Axis Max Life MD and CEO Prashant Tripathy acknowledged the disparity. “With the LGBTQIA+ community scoring just 35 and working women showing stagnation at 48, it is evident that intent alone is not translating into preparedness,” he said.

According to him, building “inclusive financial ecosystems grounded in empathy” is going to be essential.

The study, limited to metros, Tier 1 and Tier 2 cities, may not reflect the full spectrum of challenges faced by these communities in smaller towns and rural areas, where financial exclusion is often more severe. But even in urban India, where digital adoption is high and awareness campaigns are more visible, these numbers suggest that gaps in trust and tailored outreach persist.

A one-size-fits-all approach does not work for such diverse groups. The IPQ 7.0 data points to the need for life insurers to go beyond standard products and look at how gender identity, sexual orientation, and other social realities shape financial behaviour, and the barriers that come with them.