Mumbai: Top metro cities such as Delhi NCR, Bangalore, and Mumbai that have higher concentration of affluent and financially aware individuals are driving term life insurance sales followed by Hyderabad, Pune, and Chennai found a study by Policybazaar, the largest insurance aggregator.
High-salaried individuals earning between ₹15-40 lakh per annum, now constitute 15 per cent of all term insurance customers, with their contribution growing at a remarkable 30 per cent year-on-year (YoY).
The average sum assured for high-salaried individuals has increased by 20 per cent over the past two years, reaching almost ₹2 crore with the motivations including ensuring financial stability for the family, home loan protection and legacy planning. Both regular and limited pay plans were equally preferred.
Around 35 per cent of buyers were aged 30-34. The average age of term insurance buyers in this category is 34 years, reflecting a growing trend of purchasing insurance early to secure lower premiums and avoid complications arising from existing health issues, said the study. Around 12-15 per cent of high-salaried buyers were women.
Riders remained an integral part of term insurance plans for affluent buyers, with critical illness cover, accidental death benefit and waiver of premium being most popular.
