India's HNI Term Insurance Bookings Double Since 2023
Younger affluent buyers are driving a surge in high-value life insurance coverage across India.
1Surge in HNI Insurance
Term insurance bookings among India's high net-worth individuals have doubled since April 2023. Data indicates the average sum assured has risen by 30% during this period. This trend reflects a growing appetite for substantial financial protection, moving away from traditional investment-linked products toward pure risk coverage for families and dependents.
2Youth Driving Market Growth
Younger affluent buyers are emerging as a primary growth cohort within the insurance sector. Customers below the age of 35 now account for nearly 50% of high net-worth term insurance purchases. This shift challenges the historical perception that high-value life insurance is a product primarily sought by older, more established individuals.
3Preference for Pure Protection
Less than 5% of high net-worth individuals opt for term plans with a return of premium feature. Most wealthy policyholders prioritize pure financial security for their families over the recovery of premiums at maturity. This indicates a strategic focus on maximizing death benefits rather than seeking investment returns from insurance products.
4High-Value Coverage Trends
There is a 25% increase in policies featuring a sum assured of ₹3 crore or more. Approximately 5% of customers choose coverage of ₹5 crore or above, while 1.5% select at least ₹7 crore. The highest sum assured recorded on the platform currently stands at an impressive ₹25 crore for a single customer.
5Geographic and Gender Distribution
Demand for high-value protection is particularly strong in major technology, financial, and entrepreneurial hubs. Bengaluru and Hyderabad lead in policy demand, while Mumbai, Gurgaon, Faridabad, and Bengaluru rank highest for average sum assured. Women accounted for 18% of these HNI term insurance buyers in 2025, compared to 82% for men.
6Integration of Policy Riders
Many HNI customers are enhancing their standard policies with additional riders to mitigate specific financial risks. Data shows 20% select accidental total and permanent disability coverage, while 15% opt for critical illness protection. Furthermore, 9% choose accidental death benefit riders, and 8% utilize the waiver of premium rider to secure their future.
7Impact of Regulatory Changes
The demand for high-value protection has strengthened following the introduction of the zero-GST regime. While specific attribution figures regarding the tax change remain undisclosed, the marketplace reports a clear shift toward larger life covers. This regulatory environment appears to have encouraged affluent buyers to increase their total protection levels significantly.
8Strategic Wealth Protection
The shift toward higher protection reflects a broader strategy among affluent Indians to safeguard family wealth and meet long-term financial commitments. By leveraging larger covers and specialized riders, policyholders are effectively managing risks that standard policies might overlook. This trend highlights a sophisticated approach to personal finance and long-term estate planning.
Original article: mint - money — India's HNI Term Insurance Bookings Double Since 2023