Term insurance witnesses surge in premium prices

PolicyX.com recently announces its quarterly ‘Insurance Price Index’ for Quarter 12021 showcasing the shifts and trends in the premium price of term insurance and health insurance.

In the term insurance category, the Insurance Price Index indicates an uptick in the first quarter of 2021. There is a surge of 4.4%, increasing an average price of term insurance premium to Rs. 21,913 in the index value.

4 out of total 10 insurance companies have escalated their premium prices in the last quarter, whereas other companies have kept their annual premium prices intact in Quarter 1 2021. The biggest jump observed in premium prices is about 19.0%, which is followed by 18.7%, 5.5% and the minimum is 2.6%.

The term insurance average price of Rs. 5 lac sum insured has gone up to Rs. 15,553 and Rs. 1 crore has reached to Rs. 27,150 in the last quarter.

The mentioned premium prices are average from 10 leading insurance companies for various age groups i.e., 25 years, 35 years, 45 years, and 55 years and both genders. It also considers the prices for both smokers and non-smokers.

Commenting on the report, Naval Goel, Founder & CEO, PolicyX.com says, “As per our discussion with most of the insurers, term plan prices are likely to go up further. Fortunately, not all companies have affected the price increase so far. Customers who want to purchase a term plan should not postpone their decision further as they might land up paying 20% higher. The increase is due to the fact the re-insurers have increased their rates.”