Term insurance plan premiums are set to hike up to 40 per cent anytime soon as reinsurers are planning to increase the rates and tightened their underwriting norms in the wake of the Covid-19 pandemic. The Covid-19 related casualties claim post-second wave could be one of the reasons for the term plan premium increase. "Term insurance premiums are expected to see a rise owing to increased stress in the reinsurance business. The hike is significant as term premiums have remained more or less constant for the past 5 to 6 years. It's essential to remember that a term plan is the "simplest and the most cost-effective" life insurance product in the market," Anilkumar Singh, Chief Actuarial...
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How much premium you will have to pay for a Rs 1-cr term insurance plan? The popularity of insurance has increased more now than ever, especially due to the pandemic, which people believe has exposed our vulnerabilities. Therefore to cope up with the situation, experts say getting insured with an adequate amount is one of the most important financial steps one should take, be it health insurance or life insurance. Hence, while opting for a life insurance policy, make sure you have opted for an adequate cover. However, experts say, the adequate amount differs from person to person. For instance, depending on your financial commitments, income, dependents, the amount is decided. The rule with...
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How much does a Rs 2 crore term insurance policy cost? Getting adequate life insurance protection is extremely necessary to safeguard the financial interests of your dependents in your absence. While doing so, it might be a better idea to buy a term insurance policy instead of traditional policies like endowment plans as the former could offer a higher sum assured at affordable premiums, especially if you start the policy at a young age. This could also free up more money that could be invested in multiple instruments that are aligned with your risk appetite and liquidity requirements to generate the desired returns to meet your critical financial goals in time However, how do you determine...
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What the hike in term insurance premiums means for policyholders Irrespective of the price hike, it is only prudent to revisit one’s financial portfolio and rejig it with a term plan The awareness towards life and health could never have been more than it is today. A tectonic shift that continues to cut across classes, generations, and most importantly people’s mindsets. In my view, the Indian insurance industry saw, maybe for the very first time, a proactive market pull towards protection solutions, primarily term plans. No longer are term plans viewed as base instruments to save taxes. All of us now are aware, and perhaps have experienced the huge cost one has to pay for ignoring adequate...
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Insurance companies have raised term insurance premiums as a result of the high mortality rate amid Covid-19 in recent times. As per PolicyX.com, the Term Insurance Price Index value has gone up by 4.18% in Q42021. The index value has reached the new figures of ₹23,929 in this quarter. As compared to Q1 2021, the average term insurance prices have risen by 9.75% in the term index value in the quarter under ‘Insurance Price Index’ tracks prices of term insurance and Health insurance from the top five life insurers in terms of gross written premiums. The life insurers included in the index were Kotak Life Insurance, HDFC Life, ICICI Prudential, Max Life and Bajaj Allianz Life. Out of the life...
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Homemaker’s contribution to a household is irreplaceable not just towards addressing fundamental well-being of each member, but also providing emotional assistance and ensuring financial balance. Homemakers are the force that hold a family together, work endlessly and selflessly to secure their loved ones’ present and future lives and therefore need to be celebrated in a manner that ensures their future well-being as well. Here’s how we can help homemakers ensure a financially sound future for themselves. Life Insurance – A homemaker might not be the family breadwinner or income earner but still has a significant role to play when it comes to managing the household...
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When I decided to purchase long-term care insurance in my early 50s, I thought I was being so responsible. But 14 years later, facing my second premium increase, I began to wonder whether it was the right decision. The COVID-19 pandemic and its lopsided impact on the elderly, particularly those living in communal settings such as assisted living facilities and nursing homes, has focused renewed attention on long-term care. But finding insurance to cover the potentially devastating costs of an extended stay in a care facility — or the ability to receive care at home as an alternative — has become increasing difficult and costly. Many financial advisers and consumers have moved...
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Term Insurance Becoming More Expensive: Here’s why Term Insurance Plan is a type of life insurance cover that provides a specific amount of coverage for a specific time period. The death benefit is payable on such a plan in case of the untimely death of the insured during the time period of the policy, to secure the financial needs of the family of the insured. The policyholder needs to pay a premium to buy term insurance policies which are lower as compared to other life insurance policies prevailing in the market. Premiums offered by different insurance companies may vary, so the customer has the option to choose the insurer whom he finds suitable to meet his financial needs. The customer...
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The term insurance is the purest form of life insurance. In the event of your untimely death, a Pure term insurance plans provides financial protection to your family. This life insurance policy offers a death cover to the chosen nominee at a nominal cost. You can buy an online term insurance plan that enables you to go through the plan features and benefits that will help you to pick the right life cover. By buying online, you will get an additional premium discount on the purchase of a term insurance policy. Why you should buy a Term Insurance Plan? There are some key reasons for buying a term insurance plan. Financial Cover for Family It’s extremely essential to buy a term plan,...
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Relative to our international peers, Canada is experiencing alarmingly high fatality and mortality rates due to COVID-19 in long-term care (LTC) facilities. Lessons from other countries are useful in this regard. Japan, South Korea (hereafter Korea) and Germany serve as good examples of countries that have paved different paths by focusing on a continuum of care, a public insurance system and regulations. If Canada had a more universal and better regulated system, it would be able to ensure that more people access a variety of care services at home and avoid a heavy reliance on facility-based LTC. Japan, Korea and Germany introduced universal, mandatory public long-term care insurance (LTCI...
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