Compare prices across term insurance plans to get best deal: Experts

Increase payment tenure, go for monthly premium to counter hike in term rates

News reports suggest that life insurers may hike premium rates for term insurance plans once again. These rates have already been hiked once in April-May last year.  

High mortality, low premium   

Two key factors had led to last year’s hikes. Due to competitive pressure, premium rates had been plummeting in the Indian market for many years.

“At the same time, insurers had a worse mortality experience in certain market segments than anticipated,” says Sanjay Tiwari, director-strategy, Exide Life Insurance.

Reinsurers, who take the risks of insurers on their own books for a price, hiked their premium rates last year. This move forced insurers