As the awareness and demand for term insurance gain momentum, Policybazaar has observed a steadily growing preference among High-Net-Worth Individuals (HNIs) for high-value insurance coverage. This shift is visible through an increasing number of HNIs opting for high-value policies of Rs 20 Crore over the last few years, the insurance marketplace said.
The data pertains to trends on the Policybazaar platform only.
Also Read: Buying Term Insurance? Don’t Get Stuck, Know These 5 Things Before Paying Premium
According to Policybazaar, this trend reflects an evolving sense of risk management and financial planning in this segment. Also, this marks a departure from the conventional belief that online platforms are not favoured for high-value transactions.
The shift in insurance choices is also clear with more people now opting for Rs 5 Crore policies, which was seen as very high coverage.
Currently, these policies are becoming as common as the Rs 1 Crore policies, showing that Rs 5 Crore is becoming the new norm in HNI term insurance.
Key Locations
The trend indicates a notable concentration of such purchases in key metropolitan regions. In the National Capital Region (NCR), followed by Pune, Hyderabad, and Visakhapatnam, several policies worth 20 Crore have been bought by HNIs, reflecting the growing demand for comprehensive financial protection.
Similarly, cities like Bengaluru, Chennai and Mumbai have also shown a noticeable uptake, with policies ranging between Rs 10 to 15 Crore being bought by HNIs here.
Sarbvir Singh, joint group CEO, PB Fintech, said, “We are delighted to witness the growing trust of HNIs in Policybazaar for their term insurance needs. The online sale of high-ticket size policies dispels the myth that digital mediums are not preferred by customers for such high-stake transactions. We will continue to provide the accessibility, transparency and convenience that our customers trust us with.”
There have also been several interesting trends that have been noticed in consumer buying behaviour;
- More individuals are now opting for customising their coverage with suitable riders to ensure an additional layer of protection.
- Apart from this, more customers are now opting for plans with a one-time option of a Special Exit Benefit over the Return of Premium plans. While both offer the benefit of exiting your policy and getting the premiums back, the Special Exit Benefit plans come at a much lower cost.
- There has been a remarkable increase in the number of female buyers, both working and non-working, who are taking charge of purchasing term insurance policies.
Rhishabh Garg, business head, term insurance at Policybazaar, added, “The increasing demand for high-value term insurance policies highlights the importance of growing awareness among HNIs. We are committed to providing solutions that meet our customer’s needs at every step of their journey. We will continue to build products that help every customer find the right coverage to protect their loved ones.”
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