The coronavirus pandemic has heightened insurance awareness, resulting in more and more people going for a term insurance plan giving cover of Rs 1 crore or more to financially protect their families, reveals data collated by the insurance aggregator Policybazaar.com.
About 50 per cent of the customers who bought term policy opted for a cover of Rs 1 crore or more during April-August 2020-21, the insurance marketplace said.
"Calculating data for those who bought Rs 1 crore term cover, we found out that 50 per cent of the customers bought term policies with cover of Rs 1 crore and above during April-August 2020. This reflects how people are investing in higher cover policies that are available at very affordable prices i.e. around Rs 1,000 per month only," it said.
Policybazaar claims to sell one in every four term policies being sold in the country.
The uncertainties created by the COVID-19 pandemic and the initiatives taken by the Insurance Regulatory and Development Authority of India (IRDAI) are prompting more and more people to obtain insurance cover and provide financial backup to their families in these uncertain times.
Based on its data, the aggregator further said the term market has undergone a lot of changes in the first half of the fiscal (April 20 to March 21).
"For the age group 42-50, we witnessed the highest year-on-year increase in term insurance buying i.e. 77 per cent and for year 2020 the age group 31-35 holds the largest share in terms of policies bought i.e. 30 per cent," the firm said basis its data.
It further said in the High Net Individual (HNI) segment, more than 80 per cent customers went for the cover of Rs 1 crore and above, out of which 25 per cent invested in the cover bracket of Rs 2 to Rs 5 crore.
In the self-employed segment, 41 per cent of the customers chose to buy term insurance of Rs 50 lakh cover and 40 per cent went for Rs 1 crore cover, it said, and added that the traffic for the self-employed segment is growing faster than the salaried segment.
"In salaried segment, 40 per cent of the customers were interested in buying Rs 1 crore term cover. While 10 per cent of the customers went for Rs 2 crore cover, 35 per cent choose to buy 50 lakh cover," it said.