PolicyX.Com
Term Insurance Price Index
Analysis and Insights from Pricing of Term Insurance
from leading insurance companies in India.
Analysis and Insights from Pricing of Term Insurance
from leading insurance companies in India.
Leading insurers have introduced substantial discounts on term insurance premiums, resulting in a 2.69% decrease in rates for Q3, 2024. The average premium has dropped from INR 29,294 in Q2 and INR 29,359 in Q1 to INR 28,505, offering customers significant savings. This downward trend in premiums highlights a prime opportunity for individuals seeking to secure their family's future with a comprehensive term insurance policy.
With costs now more favorable than earlier in the year, it’s the ideal time to invest in robust coverage that ensures long-term financial security.
As insurance experts, we encourage customers to take advantage of this window and lock in a policy at the most competitive rates seen this year. Don't miss out on this chance to enhance your family's protection with reliable and affordable coverage.
The latest Term Insurance Price Index reveals positive developments for consumers, with premiums showing a favorable decline in Q3, 2024. Driven by dynamic market conditions and competitive discounts from leading insurers, the reduction marks a significant step toward making financial protection more accessible.
Key Findings From Q3 2024:
-Premium Reductions for Females
-Premium Reductions for Males:
A Noteworthy Trend: Although the changes may seem modest, they signal a continued commitment by the insurance industry to offer cost-effective financial security solutions. This downward trend in premiums, particularly for females and smokers, reflects the industry's focus on making term insurance more affordable and accessible to a broader audience.
| Age | Gender | 1 Cr | 50 Lac | Grand Total | ||
| Non-Smoker | Smoker | Non-Smoker | Smoker | |||
| 25 | Female | 9,075 | 15,879 | 6,212 | 10,398 | 10,391 |
| Male | 10,509 | 18,351 | 7,216 | 12,086 | 12,040 | |
| 35 | Female | 13,626 | 23,881 | 9,070 | 15,381 | 15,490 |
| Male | 16,214 | 28,944 | 10,732 | 18,193 | 18,521 | |
| 45 | Female | 24,163 | 42,490 | 15,823 | 27,243 | 27,430 |
| Male | 31,058 | 53,180 | 22,295 | 34,683 | 35,304 | |
| 55 | Female | 45,033 | 78,140 | 27,276 | 46,992 | 49,360 |
| Male | 54,645 | 94,571 | 32,914 | 55,879 | 59,502 | |
| Grand Total | 25,540 | 44,429 | 16,442 | 27,607 | 28,505 | |
*Source: Average prices have been determined by the leading 5 term insurance companies in India. These prices are for illustration purposes & the actual price may vary depending on the insurer, age, gender, health condition, Sum Assured, and coverage type.
According to our latest update, 60% of term insurers have impressively maintained their premium rates, and the remaining 40% of insurers have experienced fluctuations. Compared to 2020, this new quarter of 2024, showcases much-needed stability in this sector. Now is the perfect time to buy term insurance with exclusive features at an affordable rate, thanks to the discounts offered by many leading term insurance companies.
Age is a vital deciding factor when it comes to buying term insurance: the younger the insured, the lower the premiums! If you delay purchasing term insurance by 10 years you will face an increased premium of:
This is the right time to invest in a term insurance plan without facing any additional premium surges. Being young represents less risk for the insurance company, thus making your premiums comparatively lower at an early age.
| Age Brackets | % Change in premium prices |
| 25-35 | 51.62% |
| 35-45 | 84.46% |
| 45-55 | 73.53% |
In the third quarter of 2024, the Term Insurance Price Index highlights a significant gap in premiums based on gender. Males face a 22.11% higher premium compared to females, emphasizing the affordability advantage for women in the term insurance market.
These findings underscore the need for continued industry attention to fair pricing practices and equitable access to insurance coverage.
If you require the best term plan, you need the help of a term insurance premium calculator. Use PolicyX.com's term insurance calculator to look at the average premium for your age and gender.
Calculate NowThe current trends of the term insurance price index display premium differences due to the smoking habits of policyholders.
Non-Smoker vs. Smoker Premiums: As per recent data, non-smokers have to pay lower premiums compared to smokers thanks to their decreased risk profile.
E.g. Smoking a female: pays around 74.53% higher premiums for an INR 1 Crore term plan when compared to a non-smoking female. Similarly, for males, the premium differential is approximately 73.49% higher for smokers.
To update the PolicyX Price Index, we have considered the average premium prices of 5 top-most term insurance companies in India, in terms of their latest earned GWP. The companies included in our data analysis are Tata AIA Life, HDFC Life, ICICI Prudential, Max Life, and Bajaj Allianz Life.
The prices given are a representation of the yearly premium for every sample policyholder in terms of age, gender, and smoking status in Q3 2024 (October - December 2024). In addition, the analyses also factor in the sum assured and the policy type (Term Insurance) for a comprehensive evaluation. It is important to note that the insurer's individual rate may vary depending on age, gender, health profile, sum assured & coverage type.
Got a press query? Contact our press team, they'll be happy to help with any questions you may have regarding the latest price index.
For Feedback and suggestion: helpdesk@policyx.com
Contact Our Team
