New Delhi: India’s affluent families drive 100 per cent jump since April 2023 in high-net-worth individual (HNI) Term Insurance bookings. A report mentioned that the average sum assured also recorded a rise of 30 per cent during the period. It is an indication that the wealthy Indians are opting for substantial financial protection.

According to a Policy Bazaar report, 50% of HNIs below the age of 35 are emerging as the key growth cohort. This is in contrast with the traditional perception that high-value life insurance is primarily an older HNI’s purchase.

According to the data, the younger generation of wealthy families in India are emerging as a key driver of this growth, with HNIs below the age of 35 accounting for a significant share of new demand.

The data highlights affluent customers are treating term insurance as a way to protect family wealth, meet long-term financial commitments and secure their dependants' financial future.

Multi-crore term insurance policies gain popularity

The high-value life insurance is becoming more popular, as policies offering a sum assured of Rs 3 crore and above are witnessing a 25% increase.

Multi-crore life cover gains traction among HNIs

The report attributed the rise in larger cover term insurance to the introduction of zero GST on individual life insurance premiums.

Salaried HNI customers: The average sum assured stands at around Rs 2 crore. The highest life cover purchased on the platform was Rs 25 crore.

The data stated HNI customers are also strengthening their insurance policies through additional riders. Twenty per cent of HNI customers have opted for Accidental Total and Permanent Disability, making it the most popular rider. Critical illness was placed at second spot as 15 per cent subscribed to the additional protection.

The Accidental Death Benefit rider was chosen by around 9% of customers, while 8% went for opt for the Waiver of Premium (WOP) benefit.

Women account for 18% of HNI term insurance buyers

Men accounted for around 82% of the HNI term insurance segment last year. Women represented approximately 18% of the total customer base.

HNIs are preferring pure protection over return of premium. The report mentioned that less than 5% of HNI customers purchased Term Return of Premium (TROP) policies. The data suggests that the wealthy families are increasingly treating term insurance as a financial safety net.

Affluent customers are also preferring Limited-pay options to complete their premium commitments over a shorter period.