PolicyX.Com
Term Insurance Price Index
Analysis and Insights from Pricing of Term Insurance
from leading insurance companies in India.
Analysis and Insights from Pricing of Term Insurance
from leading insurance companies in India.
The latest Term Insurance Price Index reveals mixed trends for consumers, indicating a dynamic shift in the market. While the overall premiums increased by 1.58% in Q4 2024, this change was not consistent across all insurers. Some companies raised their premiums to reflect market conditions or adjust to rising reinsurance costs, while others strategically reduced their rates to remain competitive. Additionally, a few insurers maintained their premium rates, likely focusing on customer retention or market stability. These varying approaches underline the importance for consumers to compare policies carefully and choose the most suitable option based on their needs and budgets.
Overall the index has increased by a significant 44.37% since the PolicyX.com insurance price index was launched in Q4, 2020. This increase is a result of an increase in prices by most of the re-insurers in the country due to the increasing death claims.
The current Term Insurance Price Index shows various trends for consumers: premiums are slightly on the rise at 1.58% in Q4 2024, though not applicable for all insurers. Some insurers increased their premiums, others decreased, and many insurers kept their premium rates stagnant without any changes.
Key Findings from Q4 2024:
Premium Reductions for Females
Premium Reductions for Males:
A Noteworthy Trend: Although the changes may seem modest, they signal a continued commitment by the insurance industry to offer cost-effective financial security solutions. These varied premium trends, especially for females and smokers display the insurance sector’s aim to make term insurance more affordable and easily accessible to larger sections of consumers.
| Age | Gender | 1 Cr | 50 Lac | Grand Total | ||
| Non-Smoker | Smoker | Non-Smoker | Smoker | |||
| 25 | Female | 9,240 | 16,173 | 6,438 | 10,798 | 10,662 |
| Male | 10,695 | 18,679 | 7,472 | 12,539 | 12,346 | |
| 35 | Female | 13,865 | 24,294 | 9,396 | 15,960 | 15,879 |
| Male | 16,499 | 28,819 | 11,112 | 18,870 | 18,825 | |
| 45 | Female | 25,098 | 43,104 | 16,650 | 28,248 | 28,275 |
| Male | 30,041 | 52,523 | 19,521 | 34,374 | 34,115 | |
| 55 | Female | 45,828 | 79,452 | 28,238 | 48,706 | 50,556 |
| Male | 55,653 | 96,229 | 34,088 | 57,962 | 60,983 | |
| Grand Total | 25,865 | 44,909 | 16,615 | 28,432 | 28,955 | |
*Source: Average prices have been determined by the leading 5 term insurance companies in India. These prices are for illustration purposes & the actual price may vary depending on the insurer, age, gender, health condition, Sum Assured, and coverage type.
Term insurance cost increased by 1.58% in Q4 2024 as compared to Q3 2024, although this slight premium rise is inconsistent across all insurers. Few companies saw their premiums rise, few others reduced their rates, and the remaining insurers kept their premiums unchanged, as illustrated in the accompanying graph.
Age is a vital deciding factor when it comes to buying term insurance: the younger, the lower the premiums! On delaying the purchase of a term insurance plan by 10 years, you might have to pay an increased premium of:
When it comes to purchasing a term plan, the right time is now! The earlier you buy a term plan, the more you will be unaffected by the premium inflation. Being young represents less risk for the insurance company, thus making your premiums comparatively lower at an early age.
| Age Brackets | % Change in premium prices |
| 25-35 | 50.83% |
| 35-45 | 79.78% |
| 45-55 | 78.78% |
In the fourth quarter of 2024, the Term Insurance Price Index highlights a significant gap in premiums based on gender. Males face a 19.83% higher premium compared to females, emphasizing the affordability advantage for women in the term insurance market.
These findings underscore the need for continued industry attention to fair pricing practices and equitable access to insurance coverage.
If you require the best term plan, you need the help of a term insurance premium calculator. Use PolicyX.com's term insurance calculator to look at the average premium for your age and gender.
Calculate NowThe current trends of the term insurance price index display premium differences due to the smoking habits of policyholders.
Non-Smoker vs. Smoker Premiums: As per recent data, non-smokers have to pay lower premiums compared to smokers thanks to their decreased risk profile.
E.g. Smoking a female: pay around 73.37% higher premiums for an INR 1 Crore term plan when compared to a non-smoking female. Similarly, for males, the premium differential is approximately 73.85% higher for smokers.
To update the PolicyX Price Index, we have considered the average premium prices of 5 top-most term insurance companies in India, in terms of their latest earned GWP. The companies included in our data analysis are Tata AIA Life, HDFC Life, ICICI Prudential, Max Life, and Bajaj Allianz Life.
The prices given are a representation of the yearly premium for every sample policyholder in terms of age, gender, and smoking status in Q4 2024 (January - March 2025). In addition, the analyses also factor in the sum assured and the policy type (Term Insurance) for a comprehensive evaluation. It is important to note that the insurer's individual rate may vary depending on age, gender, health profile, sum assured & coverage type.
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