New Delhi: Buying term insurance plans is all set to get expensive for some customers as a few leading insurance companies have introduced new conditions deciding the premiums of the policies.  


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According to new terms put forward by a few firms, customers earning less than Rs 5 lakh annually and are not a graduate will have to pay more for purchasing term insurance. Moreover, the top insurers have increased the premiums of the policies to make them unaffordable for many.  


Following the Insurance Regulatory and Development Authority of India’s (IRDAI) guidelines, all insurers in the country are still offering standard term insurance plans. But they have either increased the premium by up to 3x or are offering the policy for a shorter period to make it unattractive for financial weak people. 


Moreover, a few insurance companies have also put forward a minimum education qualification for buying term insurance. A customer needs to be a graduate to buy the standard term insurance plan. 


If the customer isn’t a graduate, then the companies are requiring income proof of up to Rs 10 lakh annual income. Reports suggest that the increase in premium policy and complicated rules for term insurance have been introduced in the aftermath of the COVID-19 pandemic. 


Reinsurance companies are also said to have increased compliance in the case of life insurance products. But that’s not all as the premiums for re-insurance have also increased significantly.


In India, term plan rates have remained low in comparison to other countries. For instance, IRDAI's Saral Jeevan Bima Standard Term Insurance for low-income customers is offered at much-lower premiums as compared to other policies. 


Here are the term policy rates: 


SBI Life –  Male aged 30 years


The premium for Rs 50 lakh sum assured if earning above 5 lakh and graduate is Rs 9614. On the other, if the customer is not a graduate, the premium increases to Rs 15,518 and the sum assured comes down to Rs 25 lakh in the Saral Jeevan Policy. 


HDFC Life – Male aged 30 years

The premium for Rs 50 Lakh sum assured if earning above 5 Lakh and graduate is Rs 9349. Whereas, the premium increase to Rs 9559 and the sum assured dips to Rs 25 lakh under the bank’s Saral Jeevan Policy if the customer isn’t a graduate. Also Read: Gold Loan Book Outlook in 2022: Enormous scope for gold loan lending for NBFCs and banks, says Muthoot Finance MD


Premiums for term insurance online direct plans for Male, Non-Smoker, Age - 30, Sum Assured - ~1 Crore, Income above 5 lakhs, and Graduate. The below-mentioned prices are inclusive of GST.  Also Read: Petrol price cut by Rs 25/Litre in THIS STATE. Big benefit to 2-wheeler owners


                                      March 2020         December 2021     Increase 


LIC                                      ~14,122             ~14,122                0%


HDFC Life                           ~ 12,478            ~ 16,207             30%


ICICI Prudential                   ~12,502             ~17,190             38% 


SBI Life                                ~ 15,070            ~ 17,495            16%


Max Life                               ~10,148              ~11,858         17%


Source: Policy Bazaar, Licindia.in, Sbilife.co.in.


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