Summary of this article
Term insurance purchases grew 1.5 times after GST exemption.
Rs 3 crore-plus covers gained traction among HNIs and NRIs.
Women and younger buyers recorded faster term insurance growth.
Term insurance purchases have grown 1.50 times since the exemption on Goods and Services Tax (GST) was announced. Buyers are also opting for higher cover amounts and additional riders, with the shift visible across different age and income groups.
A report by Policybazaar has found that the share of Rs 3 crore and above term covers rose 35 per cent among non-resident Indians (NRIs) and 32 per cent among high networth individuals (HNIs) after the reforms in GST. The report has also recorded stronger growth in purchases among women, self-employed customers, and younger buyers.
Higher Cover Gains Traction Among Affluent Buyers
The move towards higher sum assured has been particularly visible among affluent customers. More than half of term insurance purchases are for covers of Rs 1 crore and above, while policies with cover of Rs 2 crore and above account for 15 per cent of the purchases, the report said.
Among NRIs, the share of Rs 3 crore and above covers rose 35 per cent after the GST reform. The corresponding increase among HNIs was 32 per cent. Rider adoption also rose among these groups, up by 15 per cent among NRIs and 9 per cent among HNIs.
The data points to a shift towards larger life covers among customers with higher incomes. At the same time, the report shows that growth was not restricted to affluent buyers.
Women And Self-Employed Buyers See Stronger Growth
Women recorded 27 per cent faster growth in term insurance purchases than men in the post-GST period. The homemaker segment recorded 60 per cent additional growth compared with other customer segments.
The self-employed segment also recorded 12 per cent higher growth in adoption than other segments. According to the report, self-employed professionals and business owners may have less predictable income streams and may not have access to employer-provided life cover.
The data also points to a broader mix of customers buying term insurance, including women, homemakers, and self-employed individuals.
Rider Adoption Rises 13 Per Cent
Rider adoption increased 13 per cent in the before and after-GST periods. Accidental death benefit (ADB) and waiver of premium (WOP) riders were the main drivers of this growth.
The report also found stronger adoption among younger customers. The 18-25 age group recorded 20 per cent higher growth than other age groups, with the 36-45 age group recording the second-highest uptake.
Andhra Pradesh And Telangana Lead Regional Growth
Andhra Pradesh and Telangana recorded the strongest growth, with term insurance adoption rising 39 per cent between the before and after-GST periods. Kerala followed with 11 per cent growth, while Maharashtra recorded 10 per cent growth.
The report said that the rise in term insurance purchases has been spread across different customer groups and regions in the post-GST period. The data also showed a combination of higher cover amounts, greater rider adoption, and stronger participation from younger customers.
