TERM INSURANCE : HNIs look for customised plans
High net-worth individuals (HNIs) are prioritising protection for themselves and their dependents from unexpected adversities by buying substantial term insurance cover. Life insurers are offering customised policies to HNIs offering coverage avenues tailored for wealth preservation and legacy security.
A notable aspect contributing to the attractiveness of term insurance in India is its affordability despite providing substantial coverage. The monthly premiums for significant coverage, like Rs 5 crore, often ranges from Rs 3,000 to Rs 3500, making it a cost-effective way for HNIs to ensure robust life coverage.
In fact, 25% of the term insurance business in FY23 was accounted by HNIs, a study by Policybazaar shows. It shows that the most preferred cover amount by HNI buyers is Rs 1.75 crore, with roughly 50% of the buyers opting for this coverage.
Competitive offerings
The introduction of tele-medical check-ups has led to a threefold surge in NRIs purchasing term insurance with considerable coverage. This surge stems from improved accessibility in countries where physical check-ups posed challenges. These tele-medical check-ups not only reduce turnaround time but also enhance the overall customer experience significantly. In fact, the Policybazaar study shows 75% of NRI customers are HNIs.
Rhishabh Garg, head, Term Insurance, Policybazaar.com, says by offering coverage options up to Rs 20 crore, the industry addresses the substantial financial commitments and assets associated with HNIs. “Affordability coupled with expansive coverage has made term insurance the preferred choice among HNIs, empowering them to effectively manage their financial risks,” he says.
Similarly, Rakesh Goyal, director, Probus Insurance Broker,
