Prices for term insurance policies rose 1% in July-September, report says

NEW DELHI: The value of the term insurance price index increased by 1% to reach Rs 22,750 between July and September 2021. In the second quarter, the value of the index was Rs 22,526. rose 3.8% over a nine-month period, according to insurance price index data for the third quarter of 2021, compiled by PolicyX.com, an insurance web aggregator.

According to the data, the prices of health insurance remained stable during the period under review.

The average annual premium payable for an amount insured by Rs1 crore term insurance rose to Rs 29,127 in the third quarter, from Rs 29,010 in April-June 2021, according to the statement released by the insurance aggregator.

Naval Goel, CEO of policy.com said: “In the last 3 months, out of the 10 insurers that are part of the index calculation, 4 insurers have increased their premiums, two of which have shown a significant increase between 10, 6% and 12.6%. . Contrary to this trend, 1 insurer has even reduced its premium by around 10% for temporary plans in the last 3 months. While other term insurance companies have remained stagnant over this period. “

The increase in the value of the term insurance index was observed in the age group of men aged 35 and over, with an increase of 3.9%. In contrast, the category of women aged 55 and over saw a 1.6% drop in premium prices in the third quarter.

The data also showed that a 10-year delay in purchasing a term insurance plan could cost an average of 47% more for a 25-year-old, 72% for a 35-year-old, and 78% more. more for a person of 45 years. Age.

The premium prices mentioned have been calculated on average from 10 major insurance companies for different age groups i.e. 25 years, 35 years, 45 years and 55 years for both sexes and smoking and non-smoking categories and for an insured sum of ??50 lakh and ??1 crore.

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