The insurance industry is facing difficulties in terms of claims as a result of COVID19. This is putting direct pressure on the customers as reinsurers have increased the premium cost. According to insurance aggregator PolicyX.com, the Term Insurance Price Index value has increased by 4.18% in the fourth quarter of 2021 i.e. October-December. The index value touched Rs 23,929 during the quarter. PolicyX.com reports that there is a huge difference of 9.75% in the term index value between the first quarter of 2021 and the fourth quarter.
The average annual premium for a sum insured of Rs 1 crore rose to Rs 30,720 in the fourth quarter of 2021 from Rs 29,443 in the third quarter i.e. July-September. According to PolicyX.com, 3 out of 5 life insurance companies have increased their premium prices, with the biggest increase being 13.4%. He is followed by 4.9% and 0.9% growth. The remaining two companies kept their premiums constant.
Term insurance premium increased by 40% since March 2020
Another report has revealed that from March 2020 till now i.e. till January 2022, companies have increased the premium of term insurance by 40 percent. All private companies have increased the premium of term insurance. The premium of ICICI Prudential Life’s term plan has gone up by up to 38 per cent, while that of HDFC Life’s plan has increased by 30 per cent. LIC is the only company that has not increased the premium (No change in premium). LIC’s term plan rates have not increased for the third year in a row.
How heavy can the delay in the purchase of the policy be?
A 10-year delay in purchasing a term policy can cost an average person 48.9% more at the age of 25. On the other hand, a 35-year-old person may have to spend 77.6% more and a 45-year-old person 80.8% more. Whereas a man who smokes may have to pay 50.5% more than a man who does not smoke and a woman who smokes may have to pay 49.5% more than a woman who does not smoke.
LIC policy: By paying premium through net banking, you get rid of these hassles
There are some policies of LIC, whose premium you can pay through both offline and net banking methods. If you pay the policy premium through net banking then some hassles are avoided. Let’s know about them…