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Allowing your life insurance policy to lapse carries a very high cost

You will lose out on the cover, pay a surrender charge, and usually end up paying a higher premium when you buy a new policy

Life insurance, insurance
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Sanjay Kumar Singh New Delhi
 The persistency ratio within the life insurance industry continues to be low, according to data published in the Handbook on Indian Insurance Statistics for financial year 2020-21. The median 61-month persistency figure for the industry for FY2020-21 stood at 39.4 per cent. This figure has remained in the thirties since 2016-17.

Persistency ratio tells us what percentage of an insurer’s policies are still in force after a certain period of time, say, one, three, four or five years. This figure should be looked up before selecting an insurer. Satisfied customers tend to stay with an insurer for a longer time.

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First Published: Feb 18 2022 | 8:13 PM IST

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