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Buying Term Or Life Insurance To Get Cheaper, Health Insurance Expensive

Roshni Agarwal

As per a leading dailies report, while the cost of buying life or term insurance is set to get cheaper, the health insurance plan may get dearer for you. The reasons cited for the development is that life insurance has seen a fall in its operational cost due to use of technology that has resulted in cheaper sale and underwriting process for the sector.

Also, support from the global reinsurers is weighing on the sectors' growth that is upbeat with regard to India's prospects due to protection gap. Swiss Re, global reinsurer, defines the terms as the shortfall shortfall in the amount of cover necessary to maintain the .. current living standards of dependents".

This is also due to an improvement in the mortality table which is prepared every year by the Institute of Actuaries of India. Nonetheless, the insurers for the current season are reluctant to reflect this in their price due to already low premiums for life insurance as against global peers.

But when it comes to health insurance, the premiums shall inch higher due to the several directives to cut on the various exclusions. This simply means now the courts are in favour of including some of the otherwise excluded ailments such as mental ailments, congenital disorders and HIV.

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