Term insurance is cheap and provides the necessary financial security cover for your family. Therefore, it should be included in everyone’s priority.
Term insurance is very important for the financial security of you and your family. But despite knowing its features, the number of people who buy this insurance cover is still small. Term insurance is cheaper. Although you do not get any returns in this, it provides financial security to your family if you are not there. Therefore, every person must buy term insurance. Since the demand for term insurance is high, companies keep increasing its premium. In the coming days, companies are going to make term insurance expensive again. Therefore, this is the right time to buy term insurance.
Effect of rate increase on behalf of re-insurance companies
According to a report in the Economic Times, life insurance companies are preparing to increase the premium for term plans. The reason behind this is being told that many reinsurance companies have increased their rates. Re-insurance companies insure the risk of insurance companies. Reinsurance companies have increased their rates at a time when life insurance companies are facing higher martiality claims due to Kovid.
The cost of insurance companies is increasing
Reinsurance rates for Indian insurance companies were rising even before the Corona transition. Global underwriters had raised concerns about low rates in the Indian market. Since this increase occurred during the epidemic corona era.
Therefore, the insurance companies have no scope to bear the higher costs themselves. Some reinsurance firms had changed rates earlier this financial year. While some companies are thinking about changing the rate. The rates of reinsurance companies are based on the expectancy. This is a long-term trend. But this time, reinsurance companies have decided to increase their rates during the Corona transition.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.