Some interesting life and health insurance trends from Policybazaar in India here;
Key Insights at a glance:
1. Bigger protection: HNI term bookings have doubled since April 2023, while Average Ticket Size has risen 30%
2. Earlier protection: HNIs below the age of 35 are emerging as the key growth cohort.
3. Protection over savings: Less than 5% choose TROP, reflecting that HNIs are increasingly using term insurance as a pure financial-protection tool
HNI term insurance bookings double since April 2023
· The data shows approximately 100% growth in HNI term insurance bookings since April 2023 accompanied by a 30% increase in average sum assured, highlighting growth in both adoption and the value of protection among affluent buyers.
· This also reflects HNI customers are considering substantial life cover to safeguard family wealth, meet long-term financial commitments and secure their dependants’ financial future.
Younger HNIs are driving the next wave
50% of HNIs below the age of 35 are emerging as the key growth cohort; challenging the traditional perception, that high-value life insurance is primarily an older HNI’s purchase.
· This fact points to a broader shift in how younger affluent Indians approach financial protection, & integrate life insurance earlier into their financial planning.
· Interestingly, this growth is not being driven solely by existing policyholders, topping up their protection, but by younger HNIs entering the market for higher protection.
Multi-crore life cover gains traction among HNIs; ₹3 crore-plus policies rise 25%
Life cover amount Proportion of HNI buyers
₹3 crore and above 25%
₹5 crore and above 5%
₹7 crore and above 1.5%
₹10 crore and above 1%
· The appetite for high-value protection is particularly visible among the HNIs. There was a one-fourth increase in policies with ₹3 crore and above life cover. Around 5% of HNI customers opt for covers of ₹5 crore or more, while 1.5% opt for ₹7 crore-plus covers and 1% opt for ₹10
crore or higher covers. The trend has accelerated further following the introduction of the zero-GST.
· The share of HNI customers opting for higher sum assured cover reflects demand for multi-crore protection among affluent buyers.
Riders: HNIs want comprehensive protection
HNIs are also supplementing their basic life cover with additional protection.
· Critical Illness and Accidental Total and Permanent Disability (ATPD) emerge as the most popular rider choices among HNI customers.
· This signifies that affluent buyers are looking beyond death protection towards coverage against disability and major health-related financial risks.
Bengaluru and Hyderabad lead HNI term insurance demand; Gurgaon, Faridabad see higher average covers
· HNI term insurance demand is strong across major technology, financial and entrepreneurial hubs with Bengaluru, Hyderabad leading in policy demand.
· In terms of average sum assured Mumbai, Gurgaon, Faridabad and Bengaluru rank highest, highlighting differences in both the volume of policies purchased and the level of life cover customers opt for.
₹2 crore is the average cover among salaried HNIs
· Among salaried HNI customers, the average sum assured is around ₹2 crore.
· The highest sum assured purchased on the platform by an HNI customer stands at ₹25 crore, highlighting the widening spectrum of protection sought by affluent consumers.
Men dominate, but female participation is meaningful
· Last year, women accounted for around 18% of HNI term-insurance buyers, with men making up the remaining 82%.
· The female share indicates that high-value life insurance is increasingly becoming part of financial protection planning among affluent women as well.
HNIs prefer protection-focused term plans
· Less than 5% customers opt for Term Return of Premium (TROP) plans. This customer behaviour showcase growing preference for protection-oriented products, particularly as term plans increasingly offer features such as smart exit options.
Rider Share of HNI customers
Critical Illness 15%
Accidental Total and Permanent Disability (ATDP) 20%
Accidental Death Benefit 9%
WOP 8%
Limited-pay gaining traction
· Around 40% of HNI customers opt for regular-pay policies, while the majority prefer limited-pay or pay-till-60 options. This signifies preference among affluent customers to complete their premium commitments over a shorter period rather than continuing payments throughout the entire policy duration.
Varun Agarwal , Head of Term Insurance at Policybazaar said, “India’s HNI term insurance market is seeing a clear shift towards higher protection, with affluent customers increasingly opting for larger life covers. Our data shows that HNI term insurance bookings have doubled since April 2023, while the average ticket size has grown by 30%. We have also seen that nearly 50% of HNI customers are below the age of 35, highlighting how younger affluent Indians are prioritising financial protection early in life. Additionally, ₹5 crore-plus policies have nearly tripled following the introduction of the zero-GST regime. For HNI families, substantial life cover, along with add-ons such as Critical Illness and Accidental Total and Permanent Disability (ATPD), can play an important role in protecting family wealth, meeting financial commitments and securing their dependants’ future.”
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