“For higher sum insured policies, the premium rates are quite competitive now. That is why people are now opting for higher sum insured”, he added.
Experts are of the opinion, due to covid, the spending on the medical expenses has become fairly high. Hence, people are relaising that they must have a decent sum insured. It is this middle range (Rs 20–50 lakh) where the maximum traction is being seen. However, people should move to Rs 1 crore sum insured option because the added price that one has to pay to get a sum insured of Rs 1 crore is not huge, they believe.
Amit Chhabra, Head–Health Insurance, Policybazaar.
com said, “Another factor contributing to this trend is, the high sum insured plans have become more affordable than it used to be. Furthermore, the various options that has come up with regard to paying premiums (EMIs), has helped in making high sum insured plans more affordable”, he added.
According to data compiled by Policybazaar.
com, the age group of 30-40 holds the highest share in buying the high sum insured policies i.e. 52 per cent. Of this, only 13 per cent have pre-existing diseases while 87 per cent do not have any pre-existing diseases. The adoption of higher sum insured is much more among the younger age group because as one ages, the plans become more expensive.
Also, out of the total high sum insured policies sold on their website, around 47 per cent is of policies with a sum insured in the range of Rs 25-50 lakh while policies with a sum insured of Rs 1 crore constitute 53 per cent.
“Takers of insurance below the age of 45 has gone up so naturally this trend of opting for higher sum insured is being seen in the age group of 25-45. There is also demand for further high sum insured in the range of Rs 50 lakh – 1 crore”, Batra said.
Importantly, people in the national capital and its adjoining areas (Delhi NCR) are buying higher sum insured policies than any other metro city, data revealed. The share of high sum insured plans bought by consumers in Delhi NCR sand at 47.2 per cent, while in Karnataka and Telangana regions it is 22 per cent and 26 per cent respectively followed by 18.2 per cent in Maharashtra.
A few months ago, the regulator also removed the cap on sum insured that insurers can offer for Arogya Sanjeevani health policies. Initially, the regulator had capped the sum insured at Rs 5 lakh but after a few months of launching, it allowed insurers to offer higher sum insured under the product.