Rajkotupdates.news : Corona Third Wave Affect Life Insurance!

Recently, many life insurance companies have increased their term insurance rates by 20-30% due to a surge in premium rates by reinsurers. This increase was a response to the damaging second wave of COVID-19 in India during April and May 2021, which led to a sharp rise in claims and affected the margins of insurance companies.

However, as the impact of the third wave is still being studied, life insurers are taking a cautious “wait and watch” approach before deciding on raising premium rates. Rushabh Gandhi, Deputy CEO of IndiaFirst Life, explains that reinsurers have increased their rates by approximately 30% in the past year, which has led to almost all life insurance companies increasing their premium rates by over 20%.

Although the third COVID-19 wave’s mortality rates continue to remain in check due to vaccine penetration, the impact of the wave is yet to be completely understood. Life insurers are taking a more vigilant approach toward underwriting, but IndiaFirst Life does not anticipate a further increase in premium rates in the current financial year.

Rajkotupdates.news : Corona Third Wave Affect Life Insurance

Some life insurance companies, such as HDFC Life, ICICI Prudential, and Bajaj Allianz Life, have already increased their term insurance rates, and other insurers are expected to follow suit. The re-insurer player had asked the prices to increase by 40-50%, but insurers have only increased them by 20-30%.

It is still too early to predict the impact of the third wave, and if things go out of control, and there are more casualties, there may be a revision in rates of term plans going forward. According to PolicyX ‘Insurance Price Index,’ the Term Insurance Price Index Value has gone up by 4.18% in Q4, 2021.

Experts recommend buying life insurance early in life, as major price changes are reflected in the older age categories carrying higher risk. It is also essential to compare prices before buying, as different companies offer different prices.

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So What Should You Do?

Rajkotupdates.news : Corona Third Wave Affect Life Insurance

Naval Goel, the Founder, and CEO of PolicyX, suggests that the best way to buy insurance is to start early in life. This is because the premiums increase as you get older and the risk to your life is higher. It’s also important to compare prices before making a purchase, as different companies offer different prices for the same coverage. So, it’s a good idea to look online and compare the premiums of different insurance companies before making your decision.