As per PolicyX.com’s Insurance Price Index, there is a significant jump in term insurance premiums, while prices of health insurance policies remained changed despite the continuous rise in COVID-19 cases during the first quarter of the calendar year 2021.
PolicyX had launched the price index in January that allows users to observe shifts and trends in the premium prices. During the March quarter, in the term insurance category, the price index surged 4.4%, indicating that the average price of term insurance premium rose to Rs. 21,913 in the index value.
Out of total 10 insurance companies covered under the index, 4 insurance companies hiked their premium prices in the last quarter. The biggest jump observed in premium prices was about 19.0%, which was followed by 18.7%, 5.5% and the minimum was 2.6%.
The 10 companies covered under the index are LIC of India, SBI Life, HDFC Life, ICICI Prudential, Max Life, Bajaj Allianz Life, Aditya Birla Sun Life, Kotak Mahindra Life, Tata AIA Life and Canara HSBC OBC Life.
According to the company, there are some indications that other insurance companies might also increase their term insurance premium prices in the near future.
Naval Goel, Founder and CEO, PolicyX.com, stated, “As per our discussion with most of the insurers, term plan prices are likely to go up further. Fortunately, not all companies have affected the price increase so far. Customers who want to purchase a term plan should not postpone their decision further as they might land up paying 20% higher. The increase is due to the fact the re-insurers have increased their rates.”
