|| SHANIWAR SAMWAD || 18-12-2021

 In the market there are many term insurance plans, increasing sum assured, reducing sum assured, sum assured with an annuity, increasing annuity, etc.

When the insurance market was opened up for private players. The actual cost of pure insurance products was kept low.

At that market was not mature as on today.

Initially, when the market was nascent, customers were reluctant to purchase the products of new companies.

Now private insurance companies are gaining customer confidence with the ever-increasing claims.

We are not going to discuss all these things here, but the actual cost of insurance, which we have to pay.

Last year cost of Term Insurance increased in April 2020.

Due to the pandemic, the number of claims increased. As companies are paying these claims the total cost increased.

Again coming month cost of insurance is increasing approximately 20%.

Why this is happening, the life expectancy has increased with increasing lifestyle diseases.

If we see the present cost, it is not sustainable in long term. For example cost of acquiring term insurance from the LIC OF INDIA is very high.

The actual cost is reflected in this. The slowly actual cost of insurance will reflect in the market with a gradual increase in the price of acquiring insurance.

Insurance premium table, means cost approved for a particular group of age, is actually increasing.

As said above the lifestyle diseases increasing, so the number of tests in the initially.

What will be the best solution for the insurance depends on your need and your income source.

But the cost of acquiring term insurance will increase soon after the pandemic is true and it will continue in the coming years.