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A leading online insurance aggregator, PolicyX.com releases 'Insurance Price Index' data for Quarter 3, 2021.The latest data, comprising July, August, and September 2021, depicts a marginal shift in the Insurance Price Index Value of Term Insurance whereas health insurance prices have remained stable during the same period.Term Insurance Price Index value has escalated by 1%, taking the index price to INR 22,750 in Quarter 3, 2021. In Quarter 2, 2021, the Term Insurance index value was INR 22,526. As per the Term Insurance Price Index trend, the total index value for Term Insurance has increased by 3.8% in the span of 9 months.The average annual premium payable for a sum assured of INR 1 Crore has gone up to INR 29,127 in the third quarter, 2021 compared to INR 29,010 in Quarter 2, 2021.In the last 3 months, out of the 10 insurers that are part of the index computation, 4 insurers have hiked premiums, wherein two of them exhibited a significant increase between 10.6% to 12.6%. Contrary to this trend, 1 insurer has even reduced their premium by approximately 10% for term plans in the last 3 months. While other term insurance companies remained stagnant in this duration.The escalated index value of Term Insurance has impacted uniquely across all age groups as the highest impact of increased prices were felt by the age group of 35 & above Male category with a 3.9% increase in the index value. On the contrary, the Female category of 55 years & above experienced relaxation with a 1.6% reduction in premium prices in Quarter 3, 2021.Further talking about gender difference, the Term Insurance Price Index Quarter 3, 2021 observed the premium variation of 20.7%, where the male audience paid a higher premium than the female audience.The data also showed that delay in purchase of Term Insurance plan by 10 years could cost on an average 47% dearer for a 25-year-old, 72% dearer for a 35-year-old, and 78% dearer for a 45-year-old.The mentioned premium prices are averaged from 10 leading insurance companies for various age groups i.e. 25 years, 35 years, 45 years and 55 years for both genders and smokers & non-smokers category and for a sum assured of INR 50 lacs and INR 1 crore.For a detailed report on Term Insurance Price Index click here:The Health Insurance Price Index maintained tranquility with no change in the index value in Quarter 3, 2021. The Health Insurance Price Index has been persistent at INR 25,124 since Quarter 4, 2020. This is the result of no price hike in the 5 health insurance companies forming the part of the index. Although there were numerous media reports suggesting an imminent hike in health insurance premium prices due to the catastrophic pandemic, the data seems to suggest that none of the 5 companies have changed their prices.The average payable premium by a 26-year-old across categories was INR 16,695 for INR 10 Lakh sum insured amount and INR 13,140 for an INR 5 lac sum insured highlighting the fact that premium does not increase proportionately with sum insured. From 5 lac to 10 lac sum insured, there is a hike of only 27% in premium compared to a 100% increase in sum insured.The data highlights the fact that adding members to the family floater policy does not increase the premium proportionately. In fact, there is an increase of premium of 50% on an average on adding 1 more adult of the same age or lower age in the same policy. The increase is meager (11.9% and 13.7% on adding 1st child and 2nd child respectively) on adding children to the policy.Of the 5 companies, forming the index, the variance observed in premiums among the health companies is quite high (ranging from 59% to 76% for different age groups) as compared to variance observed in term insurance companies. This is primarily because of the fact that coverage, features, and benefits differ significantly for health insurance whereas term insurance is usually simple with similar benefits in case of death.The premium prices for Health Insurance are average prices taken from the leading 5 health insurance companies for all age groups i.e, 26 years, 36 years, 46 years, and 56 years & all coverage types i.e, 1 adult, 2 adults, 2 adults + 1 child, and 2 adults + 2 children.For a detailed report on Health Insurance Price Index click here:Naval Goel, Founder & CEO of PolicyX.com says: "It is great to see that the prices have not increased despite the fact that the insurance industry was hit by record Covid19 claims and losses. Although the pandemic has resulted in a higher incidence of claims, there is an increased awareness of the need for insurance amongst the Indian population which should provide the impetus to help the industry grow faster."This story is provided by BusinessWire India.will not be responsible in any way for the content of this article. (ANI/BusinessWire India)( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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Index value of term insurance, Latest News

Business :Term Insurance Prices climbed up by 1 percent, while health prices remained stable in Q3: Shows PolicyX.com's Insurance Price Index

A leading online insurance aggregator, PolicyX.com releases 'Insurance Price Index' data for Quarter 3, 2021. ...