Policybazaar says over half of term-insurance buyers now opt for ₹1 crore-plus cover
Policybazaar says GST relief has accelerated term-insurance adoption, with purchases growing about 1.5x in the following year. Covers above ₹2 crore account for 15% of purchases, while demand is rising faster among women, young adults, HNIs and NRIs.
What happened
PolicyBazaar · Policybazaar reports GST relief has lifted Indian term-insurance adoption and shifted buyers toward higher cover. Over half now select ₹1
Key facts
- More than 50% of term insurance purchases have cover of ₹1 crore or more
- Term insurance adoption grew around 1.5 times in the year after GST reform
- ₹2 crore-plus covers represent 15% of purchases
- ₹3 crore-plus cover share rose 32% among HNIs
- ₹3 crore-plus cover share rose 35% among NRIs
- Rider adoption increased 13%
- Female term-insurance adoption grew 27% faster than male adoption
- Term-insurance growth among ages 18-25 was 20% higher than other age groups
Why this matters
Insurers, fintechs and wealth platforms have a stronger case to partner with or acquire capabilities in affluent-customer acquisition, underwriting automation and NRI insurance distribution.
What to watch
- Monthly and quarterly term-policy sales growth after the GST relief base effect normalizes.
- Share of ₹1 crore-plus and ₹2 crore-plus policies in insurer and aggregator disclosures.
- Average annual premium, conversion rates and customer-acquisition costs for online term products.
- Policy lapse, renewal and claims ratios for recently issued higher-cover cohorts.
- Any changes to GST treatment, income-tax incentives, underwriting rules or reinsurance pricing.
- Insurers launch simplified high-sum-assured term plans with faster underwriting and rider bundles.
- Aggregators target women, young salaried buyers, HNIs and NRIs through segmented digital campaigns and financial-planning content.
- Life insurers increase medical-data, fraud-screening and reinsurance capacity for larger-ticket policies.
- Banks, wealth managers and employers expand term-insurance cross-sell through salary, mortgage and employee-benefit channels.