It’s always interesting to get some market data from one of the biggest nations of the world in terms of population and demand for health/Life products. Here’s the word;
Key highlights:
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Post-GST reform, term insurance adoption grew by ~1.5x
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₹3 Cr+ covers gain traction: NRI and HNI share of ₹3 Cr+ covers rose 35% and 32%, respectively, post-GST
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Women term insurance purchases grew 27% faster than men
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Rider adoption increased 13%, led by Accidental Death Benefit and Waiver of Premium riders.
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Self-employed purchases grew 12% faster than other customer segments
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The 18–25 age group grew 20% faster than other age groups
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More than half of purchases are for ₹1 Cr+ covers, while ₹2 Cr+ covers hold a 15% share
GST exemption drives 1.5x growth in term insurance purchases
A year since the GST exemption, term insurance adoption has grown by ~1.5x, signalling a strong increase in consumer demand for life protection. Greater affordability is encouraging customers to reassess their protection needs, opt for higher sum assured and strengthen their coverage with additional riders.
35% rise in NRI and 32% rise in HNI share of ₹3 Cr+ covers post-GST reform
The shift towards high sum assured plans is particularly evident among affluent customers. NRIs and HNIs are increasingly opting for life covers of ₹3 crore and above.
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NRI share of ₹3 crore+ covers increased 35% post-GST
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HNI share of ₹3 crore+ covers increased 32% post-GST
The trend extends beyond the base cover, with affluent customers also opting for more comprehensive protection through riders:
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Rider adoption among NRIs increased 15% post-GST
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Rider adoption among HNIs increased 9% post-GST
The data indicates that GST relief is creating room for customers to increase the quantum of life cover as well as strengthen the breadth of protection, particularly among higher-income segments.
Women term insurance purchases grow 27% faster than men; homemaker segment records 60% additional uptake
Women are increasingly adopting term insurance, with growth in the female segment significantly outpacing that among men.
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Female term insurance adoption grew 27% faster than male term insurance adoption
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The homemaker segment recorded 60% additional growth compared with the rest of the segments
The strong growth among women, particularly homemakers, points to a gradual broadening of how families view financial protection. Term insurance is increasingly being considered not only in the context of an individual’s income, but also the economic value and financial responsibilities associated with homemakers and women within a household.
Adoption among self-employed individuals grows 12% faster than the other segments
The self-employed segment also recorded strong growth following the GST exemption.
- Uptake in adoption among self-employed customers was 12% higher than the other segments
Unlike salaried employees, self-employed professionals and business owners often have less predictable income streams and may not have access to employer-provided life cover. The strong growth in this segment indicates increasing awareness of the need to create personalised income and family protection outside traditional employer-linked benefits.
More than 50% of purchases are for ₹1 Cr+ covers; ₹2 Cr+ covers maintain 15% share
While the data shows a gradual movement towards higher protection, ₹1 crore continues to be the most popular sum assured among term insurance buyers.
- More than half of term insurance purchases are for ₹1 crore+ covers
- ₹2 crore+ covers account for a steady 15% share of purchases
This indicates a dual trend: GST relief is supporting first-time and entry-level protection, while also giving existing and affluent customers greater room to opt for higher coverage.
Rider adoption rises 13% post-GST reform, led by ADB and WOP
Lower premiums are also enabling customers to supplement their base life cover with additional protection.
Rider adoption increased 13% from the pre- to post-GST period, driven primarily by strong adoption of Accidental Death Benefit (ADB) and Waiver of Premium (WOP) riders.
The trend points to a growing preference for comprehensive protection rather than relying solely on base life cover, with customers increasingly looking to address multiple financial risks through a single policy.
18–25-year-olds record 20% higher growth than other age groups
The post-GST period also saw stronger adoption among younger customers.
The 18–25 age group recorded growth 20% higher than the rest of the age groups, followed by the 36–45 age group, which recorded the second-highest uptake.
The trend suggests that consumers are increasingly recognising the importance of securing life cover earlier, when they are at the beginning of their financial and earning journeys, rather than waiting until later stages of life.
AP & Telangana lead post-GST growth with 39% uptake in adoption; Kerala and Maharashtra follow
Andhra Pradesh and Telangana, Maharashtra and Kerala recorded the strongest growth between FY25 and FY26. The uptake from the pre- to post-GST period was particularly strong in:
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Andhra Pradesh & Telangana: +39%
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Kerala: +11%
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Maharashtra: +10%
The trend indicates that the impact of greater affordability is extending beyond traditional metro markets, supporting wider adoption of term insurance across emerging and established markets.
Varun Agarwal, Head of Term Insurance, Policybazaar said, “The GST exemption on individual term life insurance has had an impact that goes beyond simply reducing the premium customers pay. What we are seeing is a fundamental shift in how consumers are approaching protection. Customers are using the affordability benefit to reassess their protection needs, opt for higher sum assured and add riders to create more comprehensive coverage.
This shift is particularly visible among HNIs and NRIs, where we are seeing stronger traction for covers of ₹3 crore and above. At the same time, term insurance adoption is broadening among women, homemakers and self-employed individuals, while younger consumers are starting their protection journey earlier. As affordability improves, the opportunity is to move the conversation from simply buying term insurance to buying adequate term insurance. We expect this reassessment of protection needs to play an increasingly important role in making life insurance a more integral part of long-term financial planning.”
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