Life insurance premium rates are rising; select one at early age

Narrow down the list of prospective insurers to well-known players having strong claim settlement ratios, then select one offering lowest price

Major private sector life insurers like HDFC Life, ICICI Prudential, Bajaj Allianz and Max Life Insurance have hiked their term insurance premiums by 4 per cent to 7 per cent. Here are a few tips on how prospective buyers should deal with these hikes.

Claims experience of insurers is the usually biggest factor behind premium hikes. “Based on it, they have to keep revising the premiums periodically. They may revise the premiums themselves. Alternatively, their reinsurers may have increased the reinsurance premiums, after which insurers pass on the increase to customers,” says Mahavir Chopra, founder, Beshak.org.

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