India life insurance premiums per policy up 42.6% in 5 years

Kamlesh Rao, chairperson of IAC-Life, said the data shows policyholders recognize the value of life insurance as their lives change. "It is encouraging to see policyholders consistently moving towards higher levels of insurance cover, reflecting a growing commitment to financial security for themselves and their families," he said.

The committee attributed the shift to rising incomes and inflation, and to changing responsibilities tied to life stages. It also cited the Covid-19 pandemic, which exposed protection gaps and pushed households to reassess their financial resilience. Insurers have responded with more tailored products, the committee added.

The release also said life insurance complements other savings and investment products. "Most other traditional savings or investment products help create wealth whereas life insurance protects against the risks and volatility while doing the same," it said.

The data also laid out the unmet need. About 87% of India faces a significant life insurance protection gap, and the gap exceeds 90% among those aged 18 to 35, the committee said. It called the shortfall a threat to families' financial security and said the challenge must be addressed on a "war footing".