Financial Talk by SHEROES with Max Life Insurance

Recently, the team of SHEROES conducted a web session for the ladies of SHEROES to gain an insight into the financial world and help them with the financial crisis that they could be dealing with in the current pandemic times. The program was conducted in collaboration with Max Life Insurance. 

Date of session: 8 April 2021

Host for the session: Kavea R Chavali (Anchor and Co-founder - Kalaneca)

The first question asked was about "Women and Money" for which Ms. Shinjini Kumar responded that roots you see at the formal finance are 

- how small pieces of money are important 

-In purchasing cycles, books, entrance exam fees, bank drafts, handicapped women - all are important for self dependent women. 

- Gender difference between wheels

How these are important things in the villages and small towns for women. 

So, she said that when she came to the city and was working in RBI, given the infrastructure, she felt she could help but unfortunately it broke her heart. So, she explained that it is not the exclusion of opportunities but this is an exclusion of the design, the way it is all system is designed. 

Q2. Talking about the Pandemic, what trends you see? 

Ans. In the city, it is observed that there has been an impact on credits. From customer perspective, the savings go up. People are not traveling in the corona pandemic situation. So, money is piling up. People are looking for other opportunities. 

Pandemic - It shakes our faith of what we know. Corona situation has taught us that we can not take things for granted. 

In people's view, time management has changed, people are spending on their internal communities rather than their external communities (conferences and seminars). 

Q3. What are the key instruments women should invest in?

Ans. Ms. Shalini Kohli (Insurance Consultant with Max Life Insurance) said that the year 2020 has been a challenging year and we all have experienced a lot. We have been resilient in terms of finance, emotions, and physical as well. 

We have observed women coming forward. A survey has been done. 

Source : https://www.maxlifeinsurance.com/maxlife-ipq

With this, the facts came forward that IPQ moved from 34-> 36 %.

Working women :-> 36 - 39%

Women are investment savvy. 

Entire sales purchase has increased. The speaker suggested the ladies to do annual review for their own and their husband's portfolio. Annual Review is an important tool to assess the areas: 

1. Environment Protection: Uncertain events like environmental hazards, involuntary retirement mode. 

2. Priorities: Have changed now. Earlier people used to save for International colleges. Now they are not accepting students. 

So, it is an important time for protection of families. They have a right attitude towards women. Protection of one's self is also important for women's health. Protecting your Net worth is important. Women took charge and gave good results in the crisis situation. There is no inequality in ratios. 

She focused on these factors:

1. Health - critical illness

2. Financial Independence - At 60-65 years of age, you become dependent on your family. Protecting the current state of income levels. 

3. Checking your current assets. 

Q4. Talking about "Immunity", how important it is to have the overall protection quotient to be high as women are the backbone of the family?

Ans. People have become informed. IPQ has revealed a lot about the  Immunity Boosters and the Critical Illness Riders. 

She further explained the difference between "Critical Illness Rider" and the "Health Insurance".  

She said that "Health Insurance" gives a mediclaim. It has certain complications. It only compensates for the money spent on hospitals whereas a "Critical Illness Rider" (Life Insurance), it is a beautiful way wherein you get a lumpsum amount. It takes care of the financial back up. Women want to know more. Rider enhances it in a beautiful manner. 

When we add a Rider (base amount) to the Life Insurance Plan, it is a top-up. 

Eg- There is a goal that by 60 years of age, at the time of retirement, I have 1 Crore Rupess. 

During the initial 15-20 years of our work-life, we start saving and we take a Rider. If may be we are sick, then our earning capacity reduces. So, in such a situation, the rider compensates us with that money. At a minimal cost, it can be added, deleted, enhanced. We can buy such stuff, when we are healthy and young. It should be more well - versed. 

Life Insurance is for your family but Critical Illness Rider is for your own illness. 

IPQ says that people have become digital savvy and around 10.4% crore people are using fitness apps. 

New changes are adapted with new lifestyle. 

The host said that it is job of a coach to guide us to make the right health or financial move and tell what is available in the market so that we can take an informed decision. 

Q5. What is your advice to invest in Digital Literacy and invest in Life Insurance?

Ans. Ms. Farida explained it with the biological context that women need to believe in themselves. Females have the XX chromosomes (where one X chromosome is for "financial knowledge". It is in them from the time of birth) whereas men have XY chromosomes. 

She said that this gene is for Financial Management or family security. 

She further added that learning should never stop. A woman can go into Stock Market. They can learn about Bit Coin. 

Any family gets that strength from women. She gave the example of her own Grandmom who had 8 kids and Grandpa was a Railway officer. Grandma managed in that salary and they never had a deficit of food. She added  that her mother also managed in the same manner. 

Ms. Farida further added  that during the demonetization time, women came up with money. Male in the family were shocked to see so much of their money inside the house in the form of savings. So, financial planning is in us. We need to be on the learning front. We should not run away from money. 

She shared a few of the acronyms: 

1. She said that believe in the "SHINE" word.  She said that earlier when men went out, they were accompanied by women. The amount of jewelry and saree she wore, that was seen. The way a woman shines, that rates a male's strength. 

2. She said that a woman's sixth sense is awesome. 

S - Stock Market

H - Health  (Health is wealth. So, believe in it and maintain it)

I - Inspiration (You just tell them how sweet food they have made and they will forget all the pain behind making it. They take it so naturally).

N - They never neglect their family

E - Elevating their lifestyle

"SHE Shines"

So, she suggested to the ladies that when they are young, they should invest in Insurance and should think about financial security. She said that "financial security" is a feeling. 

She explained us the following important terms, we often get confused with:

1. Financial security: It means that I have a basic need (my bills, rent, car petrol and maintenance etc. ) These are taken care of even when I am not there. 

2. Financial Independence: Whatever amount of bills I have, even if I am not working, that much amount is always there in my account.

3. Financial Freedom: Having much more than what makes you feel happy and comfortable. Elleviate your lifestyles. Women need to guide men around. Women need to understand that this money, this family, this house, this happy life, does belong to you.

Life Insurance - is we calculate the Human Life Value. 

Why is it that a working woman's quotient has to be lower than that of a man?

If the woman is not at home, we have to go out to eat and we have to get our clothes tailored. So, a woman is very important for a family. So, the speaker explained further that if we remove a woman from an Urban family, then a value of 45K per month, will be affected. Women are helpful and understanding. If they want to mingle with people, they should mingle. They can amuse. They can nurture. Today the human life value is important and we should start analyzing and working on our finances when we are young.  We should look at things from a holistic aspect. 

Q6. The Next Gen - women consumers are dependent or they are taking their own decisions?

Ans. Women are co-founders of the house. It is changing. Men around are changing and accepting the fact that women can take care of their finances. 

Currently, the number of policy owners are still men with 70-80% and women are 20-25% which is a great number which was earlier 10%. We are improving and changing. 

Eg, in the past, we started as women being a Telecaller. Men never were telecallers. Today we get calls from men and women as tele-caller executives.  So, gender biasedness is changing. 

Eg- Earlier airforce never took women, when the speaker crossed the particular age, then they started taking women in airforce.  Today mindsets have changed. 

There are seven sectors we should take care of: Mental, Physical, Emotional, Spiritual, Economical, Social, Relationship. 

Other than the Economical sector, women are strong in all sectors. 

Q7. What are the gaps with women consumers with respect to sustainable goals with financial goals? 

Ans. Ms. Siddhika Agarwal discussed about the gaps:

1. Government - is rolling out policies which are gender specific. Digitisation has provided us with this facility that sitting at our homes, we can carry out all the financial facilities from our smartphones. We can create savings account within 5 minutes. There needs to be spread awareness about the positive execution of schemes by government. 

2. Access is there - The way and form in which you access these products. As women, we are not allowed to open bank accounts in a few families. So, women need to take charge leaving apart the societal construct. We should have access to financial products. 

3. Products as financial instruments - Women take car loans by earning their own money, catering to their own needs. 

Sheroes money- Credit Card. Making it Pink. Focusing as women, we have some experience and change one at a time. 

The host said that society is throwing different mindsets and these are changing slowly. 

Q8. On being asked about the barriers which are still holding us as women. How collective forces need to come forward?

Ans. Collective forces are the Government, Regulators, Banks, and the people creating the financial products. The speaker said that women are the caretaker of the family. They have an instinct to take care. They need to manage household budgets but in the airplane also it has been said that firstly wear your own mask and then save others' lives.

The speaker focused on these that looking at the data and at the trends which are at the national level, we need to see that where is the gender aggregated data? How am I being informed about the products? What we actually want?

Q9. What we can do for good life and wellness and create a culture for us? 

Ans. The speaker said that women should this way, it starts with us as individuals. We must start voicing our thoughts. Ms. Siddhika Agarwal gave her own example that she belonged to a sound family and she never had to take care of her finances but when she started earning and had some cash in hand, so she felt that she was not managing it properly. So, during the third year of her work life, she sat down with her sister and analyzed that where she was spending so much. So, at that point in time, her sister gave her advice about how to save her money.

By giving her own example, Ms. Shivika Agarwal explained to us that we as women need to be so strong that we can be the financial provider for our family. As a family, we should talk about our finances and have discussions at the family level. As we are securing our families financially, we are increasing the lifestyle of our families. 

Talking about it is important. Finance is not gender-biased. We need to talk openly about it. 

As an individual, we need to do our SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis. 

Further taking up the audience questions, it was asked that how can we secure a future without a full-time job and what is the scope in the field of selling?

To this, Ms. Shinjini Kumar said that if you are selling masks, you need a market. If you are not able to get a job, you need to check that how can I skill myself. 

If you want to be an Entreepreneur, then you need to see what people want to buy, whether it's Avocados or something else. 

Understanding of money is important. There are financial implications of what you are doing. 

Another query put forward by Sushmita (from audience) was that how sheroes money will help ladies, to which the speaker replied that during COVID scenario, women have interacted with their families. There are aspirations of women that they have discussed with their families. It is important to give them their space to talk. 

How- 

Women should know and talk about in their families, as how to take loan, how to do insurance, they should talk about how wellness really matters. 

Ms. Farida said that as home makers, if women do not enough money initially as capital to invest in their business, in the beginning they can do some consultancy. 

As a home maker, women can associate with a company, they can spread a word. It is a kind of work that does not require any capital. 

There was another audience question put forward by Ms. Rawa Raza as to how to start with the investment process?

Ms. Farida replied that to begin anything, IMAGE principle should be considered. 

I- Innovative

M- Mastery

A- Authentic

G- Guts to take the risk

E- Ethical enough

Ms. Farida explained that if as a married woman, you can convince your husband for purchasing a particular jewellery, then you master yourself in one field and do that accordingly. 

Further, Ms. Shalini asked about how to start with an investment?

The speaker replied that you need to go for a complete diagnostic checkup. All the fears, insecurities, money and all other aspects, you need to design a strategy around it. Need to design the dosage accordingly. Understanding the person is important. What you want to share, things which you are comfortable with.

The speaker said that the needs and wants are different. WANTS are never - ending. NEED is to design a strategy that is realistic. We need to secure a BASE. We need to build a financial security that leads to independence. So, a consultant's job is to review on a quarterly or half yearly basis the portfolio. 

Ms, Farida said that being associated with the respective bank for past 6 years, she understands that people can go to banks. They can talk about SIP and recurring deposits. 

People must talk about Investment Markets. 

Ms. Siddhika gave her last word for the session that we should do away with fears and prejudices with respect to Money and we should start talking about money.

With respect to investments, she said that we should ask, learn and get more information. 

Ms. Merril Diniz (from SHEROES Team) closed with the e-session congratulating everyone on the World Health Day focusing on the importance of a healthy daily routine, healthy living and a healthy behaviour. She suggested everyone to have with them the Max Life - Wellness App for fitness, protection and happiness. 

Video source: https://www.youtube.com/watch?v=SdwrsF3RTuE

Speaker's Profile:

1. Ms. Farida Khan 

    Circle Head - Axis Bank Relationship, 

    Max Life Insurance

2. Ms. Shalini Kohli 

    Financial Coach

3. Ms. Siddhika Agarwal

    SHEROES Money 

4. Ms. Shinjini Kumar

    Co-founder at SALT app