Major life insurance companies have increased term insurance premiums for the current fiscal year. Bajaj Allianz Life Insurance and Max Life Insurance raised premiums by 2-3%, while HDFC Life Insurance introduced a 10% hike for policyholders aged 60 and above.
Factors influencing premium rates include age, gender, occupation, health, and smoking status. Insurers use mortality tables to set premiums and ensure solvency. Rising mortality rates have contributed to the increase in term insurance premiums.
“It’s a marginal change of 2-3%, nothing beyond the ordinary adjustments that happen often,” said a source.
