If you are preparing to get a term plan, do not delay now. Soon, term plans can be as high as 20%. In fact, most insurance companies are preparing to increase the premium for term plans. The reason for this is that many reinsurance companies in the country have increased their rates. These companies insure the risk of life insurance companies. The increase in rates by reinsurance companies has put pressure on insurance companies. On the other hand, due to the Corona crisis, insurance companies are facing more martiality claims than before. In such a situation, the insurance companies do not have the capacity to bear the increased costs themselves. In such a situation, people associated with the insurance industry say that soon insurance companies can announce an increase in premium.
Rates likely to go up from 1st April
According to insurance agents and insurance distributors, companies have indicated an increase in premium from 1 April 2021. At the same time, new contracts of reinsurance companies will also come into force. That is, companies can increase the premium from the beginning of the new financial year.
Strong increase in date claims
Date claims have increased rapidly since the Corona pandemic. Given the increase in debt claims, reinsurance companies have also increased premiums. This has impacted the profits of insurance companies. Looking at this, some companies have increased the premium and are preparing to do something.
Assessment based on experience
According to insurance experts, unlike in Western countries in India, the term insurance fee is not fixed on the basis of data and experience. Here this work is done purely on the basis of estimation. After the Corona crisis, it is believed that the death rate may be higher than earlier estimates. Therefore its charges are being increased. There are usually 3 people who die within a time in 10,000 term insurance who take a claim. But sometimes it is also 4-4.5. If this rate goes up, then the reinsurance companies will have to pay a higher price as the claim amount is up to one crore.