Exclusive: Term policy premiums likely to rise by 15-25% across life insurance companies

"The number of claims settled during the second wave was much higher than expected. The impact of COVID-19 led claims is likely to be one of the most significant reasons for term plan rates to be revised by the insurers. The hike is significant as term premiums have remained more or less constant for the past 5 to 6 years," he had said.

With the advent of the pandemic, Chatterjee said that people have become more conscious about health and safety and cannot afford to take any risk.

"As uncertainties continue to rise in the wake of the new Omicron variant, having a life cover is more important than ever.  Term plan is the need of the hour for every earning individual and should always be part of financial planning,” he said while speaking to CNBC-TV18.