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PolicyX.com Term Insurance Price Index
Analysis and insights from pricing of term insurance from leading insurance companies in India.
Broader Vision
The latest term insurance price index reveals mixed trends for consumers, indicating a dynamic shift in the market. While the sentence suggests a decrease in premiums from ₹30,778.00 to ₹29,101.00, the data actually indicates an increase between the most recent quarters.
Overall, the index displays that the latest premium has increased by a significant 44.35% since the PolicyX.com insurance price index was launched in Q4 of 2020. This increase is a result of an increase in prices by most of the life insurance companies in the country due to increasing death claims.
Average Premium Price - Sum Assured
The current term insurance price index shows various trends for consumers: premiums have increased for Q3 2026 as compared to the previous quarter. Some insurers increased their premiums, others decreased, and many insurers kept their premium rates the same without any changes.
Key Findings from Q3 2026:
Premium Decreased for Females:
- For a 25-year-old non-smoking female with a sum assured (SA) of ₹50 lakhs, the premium has decreased slightly from ₹7,032 in Q2 2026 to ₹6,141 in Q3 2026.
- Similarly, for a smoker female, the premium for the same sum assured (SA) has also decreased from ₹11,509 in Q2 2026 to ₹10,530 this quarter.
Premium Increase for Males:
- A 25-year-old non-smoking male seeking a sum assured of ₹50 lakhs will now pay a slightly decreased premium from ₹8,679 in the last quarter to ₹7,260 in Q3 2026.
- For a 25-year-old male smoker, the premium for the same sum assured has increased from ₹13,215 to ₹12,386 last quarter to this quarter.
A Noteworthy Trend:
The slight increase in premiums by the insurance industry highlights their commitment to offering cost-effective financial security solutions. These varied premium trends, especially for females and smokers, display the insurance sector’s aim to make term insurance more affordable and easily accessible to larger sections of consumers.
| Age | Gender | 50 Lac | 1 Cr | Grand Total | ||
|---|---|---|---|---|---|---|
| Non-Smoker | Smoker | Non-Smoker | Smoker | |||
| 25 | Female | 6141 | 10530 | 9191 | 15884 | 10436 |
| Male | 7260 | 12386 | 10584 | 18869 | 12275 | |
| 35 | Female | 9082 | 15856 | 14375 | 24549 | 15966 |
| Male | 10771 | 19185 | 16807 | 30326 | 19272 | |
| 45 | Female | 15715 | 27049 | 24652 | 42847 | 27566 |
| Male | 18892 | 32470 | 30200 | 52893 | 33614 | |
| 55 | Female | 28214 | 48594 | 48082 | 82417 | 51827 |
| Male | 33944 | 57836 | 57381 | 98237 | 61850 | |
| Grand Total | 16252 | 27988 | 26409 | 45753 | 29101 | |
Source: Average prices have been determined by considering the leading 5 term insurance companies in India. These prices are for illustration purposes, and the actual price may vary depending on the insurer, age, gender, health condition, sum assured, and coverage type.
Premium Revision - Insurers
Overall, the term insurance cost has increased in Q3 2026 as compared to Q2 2026.
Premium Price Variation - Age
Age is a vital deciding factor impacting your term insurance premiums. The younger you are, the lower your premiums are. On delaying the purchase of a term insurance plan by 10 years, you might have to pay an increased premium of:
- Around 69.97% for 25-year-old individuals
- Around 46.30% for 35-year-old individuals
- Around 77.19% for 45-year-old individuals
When it comes to purchasing a term plan, the right time is now! The earlier you buy a term plan, the lower your premiums are. Being young represents less risk for the insurance company, thus making your premiums comparatively lower at an early age.
| Age | 2026-Q3 |
|---|---|
| 25 | 11355 |
| 35 | 17619 |
| 45 | 30590 |
| 55 | 56838 |
If you buy a term plan at the age of 35, the premiums would be 55.16% higher as compared to premiums at 25 years of age. The premium further increases by 73.62% if you buy a term plan at 45 years. Moreover, the premiums further increase by 85.81% if you delay the purchase of the term plan to 55 years.
| Age Brackets | % Change in premium prices |
|---|---|
| 25-35 | 55.16% |
| 35-45 | 73.62% |
| 45-55 | 85.81% |
Premium Price Difference - Gender
In the second quarter of 2026, the term insurance price index highlights a significant gap in premiums based on gender. Males have to pay a 13.45% higher premium compared to females, showcasing the affordability advantage for women in the term insurance market.
In most cases, males buy a term insurance plan to safeguard their family’s financial future. To promote awareness of term plans among females, insurance companies offer lower premium prices and special discounts to females.
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. Calculate Now
Premium Price Payable - Habits
The 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 due to their decreased risk profile.
For example, smoking females:
Pay around 72.22% higher premiums for term plans when compared to a non-smoking female. Similarly, for males, the premium differential is approximately 73.40% higher for smokers.
Index Computation Methodology
To update the PolicyX Price Index, we have considered the average premium prices of 5 best term insurance companies in India, in terms of their latest earned Gross Written Premium (GWP). The companies included in our data analysis are Tata AIA Life, HDFC Life, ICICI Life, Axis Max Life, and Bajaj 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 2026 (July-Sep, 2026). In addition, the analyses also factor in the sum assured and the policy type for a comprehensive evaluation. It is important to note that the insurer's rate may vary depending on age, gender, health profile, sum assured & coverage type.
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