InvestorQ : Is Life insurance going to be expensive during the year 2021?
Anusha Savla made post

Is Life insurance going to be expensive during the year 2021?

simran Kaur answered.
3 months ago
This pandemic has caused a lot of disruption in normal lives and we will pay for it even after it is over. Increased risk of multiple health issues at the same time because of the pandemic and the adverse loss to global insurers will increase the price for life covers.

Over the coming months, the premium on term covers could increase by about 10-15% by most private-sector insurers. The major five insurers namely, Tata AIA, Max Life, PNB Metlife, Aegon life, and IndiaFirst Life have already added new term products with the insurance regulator at increased prices for the coming fiscal year. Therefore, the chances are that the other life insurers will soon follow this path.

This decision has been taken to recoup some of the losses caused amidst the pandemic due to increased claims over insurance companies. So, this year the rejection rate could also see an increase. Overall, insurers are trying to cover their losses by putting the burden on the ones looking for insurance, as that is the only way.

There will also be stricter control over the issuance of policies, as it will only issue it to those who could be able to furnish income and medical proofs. Considering the current situation, the insurers are worried that there might be a lot of hardships in this fiscal year as well.