Over the last couple of years, and also owing to the pandemic, the industry has been experiencing higher mortalities than assumed in the premium calculation. Here the current level of premium rates have become unviable. This is compelling them to increase term insurance premiums because re-insurers have revised their premiums upwards. And life insurers have to pay for re-insuring their risk because of this.
According to Policy bazaar, in the past one month, few insurance companies have already increased the prices of term life insurance plans by up to 20 per cent.
How does it work?
The actual versus expected claims are measured to price insurance plans. And, if the ratio is more than expected, it leads to a negative experience for insurers and re-insurers. Therefore, with the ratio being more and negative mortality experience, reinsurers have increased their rates for life insurance companies.
However, many life insurers have not increased term insurance premiums as yet. According to sources, some insurers are still considering whether they should pass on the hike from re-insurers to policy buyers.
With several changes being incorporated, this is probably the best time for customers to buy term life insurance policy. Since, the earlier you buy the lesser you pay. IndiaFirst Life still has some of the most affordable term life covers that can help them protect their loved ones even during such times.
Check out our affordable term plan options by clicking here!
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Yes, Non-Resident Indians (NRIs) can buy life insurance policies in India. According to FEMA (Foreign Exchange Management Act), NRIs and PIOs (Persons of Indian Origin) can purchase life insurance policies in India, given they fulfil certain conditions.
Knowing the difference between Term Insurance vs. Life Insurance can boost your financial protection
Life insurance is synonymous with protection, as it offers financial security in many ways. There are two types of life insurance plans: Term insurance and traditional life insurance policies, which include Pension plan, Child plan, Whole Life plan, Money Back plan, and Endowment Plan.
Imagine a low-risk investment that has the potential to grow your savings, create wealth, help you achieve long term goals, and secure you financially for decades!