Birla Sun Life Insurance Company slashed its premium rates on term insurance policies on Saturday, making theirs among the cheapest in the industry today.
Term insurance products traditionally are price sensitive. This is a pure risk cover, which ensures financial protection to the dependents of the policyholder in the event of his premature death. Unlike other insurance products a term plan is an annual, renewable contract, that possesses neither surrender value nor any element of savings.
As a result, any reduction in premium rates by a company is bound to see policyholders switching over and locking in at cheaper rates.
The reduction in premium rates follows Birla Sunlife having refined its approach in spreading costs as accurately as it can, said the company
