Premiums for term insurance plans are expected to rise by up to 40% in the next three-six months as the companies take into consideration the emerging mortality experience.
ICICI Prudential Life Insurance Co. Ltd, HDFC Life Insurance Co. Ltd and Tata AIA Life Insurance Co. Ltd have hiked premiums on term plans, starting 10 April. ICICI Prudential bumped it up by 40%. Others too are expected to follow suit. “There has been an increase in the rates, but our prices are based on previous mortality experience," said Suresh Badami, executive director, HDFC Life. These companies may file for another round of increase, if the current hike was less than 40%, according to Santosh Agarwal, chief business officer, life insurance, Policybazaar.
