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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.
Q2 2024 brings in good news for customers as term insurance premiums have reduced, thanks to the attractive discounts offered on premiums by leading insurers. Q1 2024 showcased a premium of INR 29,359, which has come down to INR 29,294 in Q2 2024: a decrease of 0.22%. The conclusion is that this is the best time to invest in a term insurance policy for your family's future security. Take advantage of this opportunity and ensure comprehensive coverage today.
The latest Term Insurance Price Index reveals a favorable shift for consumers, with premiums experiencing a notable decrease in Q2 2024. This adjustment is attributed to dynamic market conditions and attractive discounts offered by insurance companies.
Key Insights:
- Female Premium Reductions: Non-smoking, 25-year-old females for SI of INR 50 Lakhs will pay a reduced premium now, from INR 6,459 in Q1 2024 to INR 6,361. Similarly, for smoker females, the premium for the same SI has reduced from INR 10,780 to INR 10,622.
-Male Premium Reductions: Non-smoking, 25-year-old males for SI of INR 50 Lakhs will pay an increased premium now, from INR 7,189 in Q1 2024 to INR 7,268 in the second quarter. Similarly, for smoker males, the premium for the same SI has increased from INR 12,223 to INR 12,349 in Q2.
- Significant Impact: Most of the changes are nominal but they display a reduction of premium cost for policyholders. Suggestively, this is the best time to secure your future by buying a term insurance policy at a lower premium. The overall highlight of the latest trend shows the insurance industry's aim to make financial security more accessible and affordable.
| Age | Gender | 1 Cr | 50 Lac | Average Premium | ||
| Non-Smoker | Smoker | Non-Smoker | Smoker | |||
| 25 | Female | 9,410 | 16,448 | 6,361 | 10,622 | 10,710 |
| Male | 10,906 | 19,007 | 7,268 | 12,349 | 12,382 | |
| 35 | Female | 14,190 | 24,823 | 9,289 | 15,737 | 16,010 |
| Male | 16,876 | 30,980 | 10,992 | 18,621 | 19,367 | |
| 45 | Female | 24,492 | 43,048 | 15,927 | 27,161 | 27,657 |
| Male | 31,445 | 53,837 | 22,722 | 34,429 | 35,608 | |
| 55 | Female | 46,841 | 82,031 | 27,951 | 47,891 | 51,178 |
| Male | 56,785 | 97,649 | 33,692 | 57,634 | 61,440 | |
| Avg Premium | 26,368 | 45,978 | 16,775 | 28,056 | 29,294 | |
*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 ushers in 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 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 | 53.20% |
| 35-45 | 78.83% |
| 45-55 | 78.01% |
In the second quarter of 2024, the Term Insurance Price Index highlights a significant gap in premiums based on gender. Males face a 22.02% 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. a smoking female pays around 75% 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% higher for smokers.
Similarly, for males, the premium differential is approximately 73% 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 Q2 2024 (July - September 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.
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