Lock into current term insurance premiums, new rates unlikely before Apr 1

The sale of term plans gathered pace only over the past four-five years

The term insurance market in India, which has mostly seen a drop in premium rates over the past several years, is set to witness a reversal of trend.

Life Insurance Corporation (LIC) of India Chairman M R Kumar recently told reporters that term premiums are likely to rise due to increased stress in the reinsurance business. Prospective customers who need to buy a term plan should expedite their purchases and lock into the current rates before insurers announce their revised ones.

Term plan premiums are lower today than they were about 10 years ago. “Competition has driven premiums down. Now