Term insurance price hike in december 2021 lic hdfc life insurance baja alianze quarter kcnd

New Delhi. There is big news for those who buy term insurance. Insurance companies are continuously increasing the premiums of term insurance due to the risk of Kovid-19 epidemic and the pressure of increasing demand. Term insurance premium has increased by 4.18 percent in the December quarter of the year 2021 as well. At the same time, from the first quarter to the fourth quarter, there has been a 9.75 percent jump in prices.

Online insurance aggregator PolicyX.com has claimed in a report that in terms of prices, premiums have increased by 9.75 percent between the first quarter of 2021 and the fourth quarter. Naval Goyal, Chief Executive Officer (CEO) of PolicyX.com said that the demand for term insurance is increasing continuously in view of the risks of the epidemic.

Hence the ever increasing prices
Policy claims also increased, which directly affected the earnings of the companies. To compensate for this, companies are continuously increasing the prices. Term insurance premium grew 4.18 per cent to Rs 23,929 per annum in the December quarter. Three of the five major insurers increased premiums by 0.9 per cent to 13.4 per cent in the December quarter. The two companies have kept their premiums constant.

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Premium will be expensive as you get older
It has been said in the report that the sooner the term insurance premium is bought, the cheaper it will be. If a 25-year-old customer delays by 10 years in buying term insurance, he will have to spend 48.9% more on premiums. Similarly, a customer of 35 years will have to pay 77.6 per cent more for late purchase of term insurance and a customer of 45 years will have to pay 80.8 per cent more on delay. Therefore, to take full advantage of term insurance, one should buy the plan as early as possible.

If you smoke cigarettes, you will have to pay one and a half times the amount
The report claimed that insurance companies consider smoking a major health risk and also charge higher premiums from customers who smoke cigarettes. A customer who smokes cigarettes of the same age will have to pay 50.5% more on the term insurance premium. In the case of women, this amount increases to 49.5%. This means that the higher the risk to the health of the customer, the companies can increase the premium proportionately. Age and gender also play a big role in this.

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Prices increased by 40 percent since Corona
Insurance companies have increased the prices of term insurance by up to 40 percent since the Corona epidemic. The main reason for this is the change in the claim pattern, due to which the insurance companies have passed some of the burden on the customers by increasing the premium. Apart from this, due to the increase in claims, companies have also tightened the terms of term insurance.

LIC did not increase prices for three years
Insurance companies may be increasing the premium continuously, but Life Insurance Corporation of India (LIC) is the only company that has given great relief to its customers. LIC has not increased the prices of term insurance for its customers for the last three years. The special thing is that the prices of term insurance in India are the lowest as compared to other countries.

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Tags: General Insurance Company, Insurance