Term insurance premiums to get costlier soon; here's why

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.

Seconding his views, Anil Kumar Singh, Chief Actuarial Officer at Aditya Birla Sun Life Insurance said that it is essential to remember that a term plan is the simplest and the most cost-effective life insurance product in the market.

“Protecting one’s future financial needs with a term insurance plan is definitely good for the long run. In view of the increasing uncertainties in people’s lives, having a life cover with a term insurance plan is a must and one of the safest options, securing the financial future of one’s family members. One should assess the value basis their annual income, lifestyle and the future value of money,” he said.

As per Singh, one should have an insurance cover that is at least 7-10 times his/ her annual income.

"Thus, it is recommended to take stock of one’s insurance needs and plug the gap through a term plan soon. If one does not have a term policy yet and planning to purchase one, this is the right time. One can purchase a term insurance plan at current and cheaper rates before the prices rise," Singh told CNBC-TV18.

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