Life Insurance : LIC is the only company which has not continuously increased the premium of its term plan Tech Term.
The premium has been kept as it is. All private companies have increased the premium of term insurance.
Life Insurance latest news: Life insurance has become very expensive during the Corona period. From the beginning of Corona i.e. March 2020 till now i.e. till January 2022, companies have increased the premium of term insurance by 40 percent.
The conditions have been strict. All private companies have increased the premium of term insurance. But LIC is the only company which has not continuously increased the premium of its term plan Take Term. The premium has been kept as it is. Due to change in claim pattern and increase in premiums of reinsurance companies, companies have passed on the increase to the customers.
How did the change in premium come?
Premium of Term Insurance (
Inclusive of GST) Online Direct Plan Male, Non-Smoker, Age – 30, Term – 40, Sum Assured – Rs 1 crore
Company March 2020 January 2022 hike
HDFC Life 12,478 16,207 30%
ICICI Prudential 12,502 17,190 38%
SBI Life 15,070 17,495 16%
Max Life 10,148 11,858 17%
LIC 14,122 14,122 0%
(Source: Policy Bazaar, licindia.in, sbilife.co.in)
Term insurance became expensive in the Kovid period
- Term insurance became costlier by 40% during the Corona period
- All private companies hiked rates
- No hike in LIC’s term plan rates for the third year in a row
- Re-insurance hikes premium after change in claim pattern
- After increasing the claim of Kovid, the companies increased the conditions and premium
- Term plan rates in India have been very low as compared to countries around the world.
- Awareness increased after Kovid and the trend of term insurance increased among people.
