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Term Insurance Price Index

Analysis and Insights from Pricing of Term Insurance
from leading insurance companies in India.

Broader Vision

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.

Overall Picture
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Average Premium Price- Sum Assured

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.

Premium Revision- Insurers

Premium Revision- Insurers

Premium Revision- Insurers

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.

Premium Price Variation- Age

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:

  • Approx. 53.20% for a 25-year-old
  • Around 78.83% for a 35-year-old
  • Approx. 78.01% for a 45-year-old
Average Premium Price Age

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%
Average Premium Price Age
Average Premium Prices Gender

Premium Price Difference- Gender

Average Premium Prices Gender

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.

Term Insurance Calculator

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.

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Along Premium Smokers & Non-Smokers

Premium Price Payable- Habits

The current trends of the term insurance price index display premium differences due to the smoking habits of policyholders.

Along Premium Smokers & Non-Smokers

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.

Index Computation Methodology

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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