Term life Insurance: Demand for policies worth over Rs. 1 crore on the rise among self-employed

Investment Guru Sunday, April 20, 2025 0

Term life Insurance: Demand for policies worth over Rs. 1 crore on the rise among self-employed

Recent time More & more self-employed individuals are buying term insurance policies of Rs 1 crore and above, according to Policybazaar.

There is a 58% growth in term insurance purchases among self-employed individuals compared to the salaried segment, the Policybazaar report said

The reason for term life insurance to grow within this segment is because of tax-savings benefits and the introduction of tailored term plans.

However, with this sharp growth rate, it’s likely that the self-employed segment will continue to be an important focus for insurance companies in the coming years.

Millennials and Gen Z..!

In 2024-25, 88% of term insurance buyers among self-employed segment were millennials & Gen Z.

This intriguing statistic shows that millennials & Gen Z, are increasingly becoming financially savvy and recognize the importance of securing their future.

As they embark on key life milestones, such as beginning their professional careers and starting families, they view term insurance as a vital tool for protection.

Additionally, Monthly premium payments are a strong preference among this segment for better cash flow flexibility and budget management.

Women Self-Employed Term Insurance buyers grow from 9% in 2019-20 to 15% in 2024-25

The impressive growth of women-led start-ups reflects an increasing recognition among women entrepreneurs of the importance of securing their families’ futures.

The rise in term insurance adoption can be attributed to the increasing financial awareness and control women have over their finances, particularly in key metro areas where women-led businesses are flourishing.

Dominance of Rs. 50 lakh life cover..!

Majority of self-employed individuals are opting for term insurance policies with a sum insured of Rs. 50 lakh, which is 10% higher in 204-25 than 2023-24.

Amid rising living costs and inflation, there is a noticeable and accelerating trend of self-employed individuals purchasing term insurance policy with coverage amounts of Rs. 1 crore and more.

Top cities driving demand for term insurance among self-employed individuals..!

Metro cities such as Delhi, Bengaluru, and Mumbai are at the forefront in recognizing term insurance as a crucial financial planning tool.

Meanwhile, cities like Pune, Hyderabad, and Chennai, with their increasing number of small business owners and self-practicing professionals, are also experiencing a rise in demand for term insurance among self-employed individuals, particularly for affordable coverage options.

Add-ons Policies...!

Accidental death benefit and waiver of premium tops add-ons for self-employed term insurance buyers

These add-on provides an extra layer of security, ensuring that their families and businesses remain financially stable even in the event of an unexpected accident.

Moreover, self-employed individuals have the option to opt for Married Women’s Property Act (MWPA) as well.

For more details and policy taken