High net-worth individuals (HNIs) in India are increasingly prioritizing comprehensive protection for themselves and their dependents through substantial term insurance coverage. The preferred term cover amount among HNIs is Rs 1.75 crore, with insurers offering tailor-made policies designed to cater to wealth preservation and legacy security needs.
Affordability and Extensive Coverage
Term insurance in India stands out for its affordability, offering substantial coverage at a cost-effective premium. Monthly premiums for significant coverage, such as Rs 5 crore, typically range from Rs 3,000 to Rs 3,500, making it an attractive option for HNIs looking to ensure robust life coverage without compromising on financial considerations.
Impact of Tele-Medical Check-ups on NRI Interest
The introduction of tele-medical check-ups has led to a threefold surge in Non-Resident Indians (NRIs) purchasing term insurance with considerable coverage. Enhanced accessibility and a streamlined customer experience have contributed to this surge, with 75% of NRI customers identified as HNIs, according to a Policybazaar study.
Industry Response to HNI Needs
Insurance providers are addressing the substantial financial commitments and assets associated with HNIs by offering coverage options up to Rs 20 crore. This comprehensive approach aims to empower HNIs in effectively managing their financial risks, making term insurance a preferred choice in this demographic.
Key Considerations for HNIs
HNIs are advised to secure a sufficient life cover that sustains their family’s current lifestyle and fulfills future commitments. While some may consider their current assets as substitutes for term insurance, experts caution against this approach, emphasizing the need to account for outstanding liabilities, potential inflation, and future responsibilities.
Coverage Duration and Rider Enhancements
HNIs can opt for coverage until retirement (60-65 years) or extended coverage (up to 75 or 80 years) to align with major financial obligations or leave a substantial legacy. Additionally, riders such as waiver of premium on critical illness/disability and custom options for estate planning and wealth transfer enhance the safety net, providing comprehensive coverage tailored to financial objectives.