'Term plans becoming key products'
Hyderabad: Insurance aggregator Policybazaar said 44 per cent of its customers pan-India are currently covered by a term life insurance plan said its survey taken up to understand consumer perception and gauge their ownership level for the term insurance category.
Policybazaar.com surveyed more than 22,726 insurance buyers who used the company's mobile application between September 10 and 25, 2020, it said.
Unlike in the past, insurance has now become a product that consumers are more likely to buy without the need for a big sales push. It found that 50% of its customers have bought term policies with a cover of Rs one crore and above to financially protect their loved ones. Individuals are aware of their protection needs and are investing in higher cover policies that are available online at a monthly premium of Rs 1000-1200.
Sarbvir Singh, CEO, PolicyBazaar.com said, "It is important for consumers to compare before buying an insurance product. Investing in a term life plan needs research as one has to pay for 30-40 years so any price differences can add up to meaningful savings over the policy term. Customers while buying a term insurance usually compare two or three brands."
About 57 per cent of the respondents said they bought the policy online. The findings were also substantiated by a separate Nielsen study, for which PolicyBazaar had commissioned to conduct a brand track survey that covered a sample of 782 owners of term insurance across big cities in June-July this year.
Nearly 5 in 10 term plan owners visited aggregator website(s) for comparison on their recent term policy purchase, it said. Policybazaar sold one in four of every term policy sold in the country, it said in a release.