Insurance companies prepare to increase premium again
Insurance holders may get a shock amid rising inflation. Term insurance premium may increase again this year. Some companies are considering increasing the rates of insurance premium. Although, The increase this time will not be as high as in the last few years.. This time in insurance rates 5 From 8 percent likely.
According to media reports Covid-19 Insurance claims saw a spike for the two years following the pandemic. Now, after two years of high claims, insurance companies are planning to hike premium rates this year.. Means the insured may now have to pay more money for the premium.
Although, With the control of the corona epidemic, death claims for insurance companies have also reduced.. Country’s largest insurance company Life Insurance Corporation of India (LIC) death claims have dropped by more than a third this year. Death claim rate was very stable before the pandemic started.
what is the reason?
according to industry estimates, In the last two to two and a half years, the term insurance premium has increased by approx. 45% has increased. Because of the high mortality rate and increase in claims during the pandemic, reinsurers (Reinsurance) had raised their rates. Insurance premium prices will also depend on external factors that can affect life expectancy. WHO According to, Recent reports on several dangerous emerging diseases and the rising new COVID wave in China may also affect insurance prices. Though still the premium for term insurance in India is very low as compared to other countries
What is term insurance
Term insurance is a pure life insurance policy that provides financial security to the customers. In this, after the death of the policyholder, the policy amount is given to his nominee.. Customer interest and demand for life insurance policies have increased during the Corona pandemic..
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