The value of Term Insurance Price Index rose 1% to touch Rs22,750 during July-September 2021. In Q2, the index value was at Rs22,526. The value has risen 3.8% over a span of nine months, according to Insurance Price Index data for the third quarter of 2021, compiled by Policy Dot com, an insurance web aggregator.
As per data, health insurance prices remained steady during the period under review.
Average annual premium payable for a sum assured of Rs1 crore term insurance rose to Rs29,127 in the third quarter from Rs29,010 in April-June 2021, as per the statement issued by the insurance aggregator.
Naval Goel, CEO, Policy Dot Com said, “In the last 3 months, out of the 10 insurers that are part of the index computation, 4 insurers have hiked premiums, wherein two of them exhibited a significant increase between 10.6% and 12.6%. Contrary to this trend, 1 insurer has even reduced their premium by approximately 10% for term plans in the last 3 months. While other term insurance companies remained stagnant in this duration.”
The rise in value of term insurance index was seen in the age group of 35-and-above male category, with a 3.9% increase. On the contrary, the female category of 55 years & above saw a decline of 1.6% reduction in premium prices in Q3.
The data also showed that a delay in purchase of term insurance plan by 10 years could cost on an average 47% more for a 25-year-old, 72% for a 35-year-old, and 78% more for a 45-year-old.
The mentioned premium prices were averaged from 10 leading insurance companies for various age groups i.e. 25 years, 35 years, 45 years and 55 years for both genders and smokers and non-smokers category and for a sum assured of ₹50 lakh and ₹1 crore.
(Economy India)
