Business EconomyPosted at: Oct 26 2026 6:32PM

New Delhi, Oct 26 (UNI) India’s high-net-worth individuals (HNIs) are opting for larger life insurance covers, with bookings for HNI term insurance policies doubling since April 2023 and the average sum assured increasing by 30 per cent, according to data released by Policybazaar.
The data points to a growing emphasis on financial protection among affluent families, with younger buyers emerging as a key driver of demand. Nearly 50 per cent of HNI term insurance customers are below the age of 35, indicating that younger affluent Indians are increasingly incorporating life insurance into their financial planning at an early stage.
The trend also reflects rising demand for high-value life cover to protect family wealth, meet long-term financial obligations and secure dependants’ financial futures. Policybazaar said the share of policies offering life cover of Rs 3 crore and above has increased by 25 per cent.
The data highlights growing interest in multi-crore term insurance policies among affluent buyers. Around 5 pc of HNI customers opt for life covers of Rs 5 crore or more, while 1.5pc choose covers exceeding Rs 7 crore. About 1pc purchase policies with a sum assured of Rs 10 crore or higher.
Policybazaar said demand for larger covers has accelerated following the introduction of the zero-GST regime. The number of policies offering cover of Rs 5 crore and above has nearly tripled since its introduction, according to the company's data.
Among salaried HNI customers, the average sum assured stands at around Rs 2 crore. The highest sum assured purchased by an HNI customer on the platform was Rs 25 crore.
Affluent customers are also adding riders to their term insurance policies to cover risks beyond the loss of life. Policybazaar's data shows that accidental total and permanent disability (ATPD) is the most popular rider, selected by 20 pc of HNI customers, followed by critical illness cover at 15pc.
Accidental death benefit riders account for 9pc of customers, while 8pc opt for waiver of premium (WOP) benefits.
The trend suggests that HNI buyers are increasingly considering protection against disability and major health-related financial risks alongside life insurance.
Bengaluru and Hyderabad are among the leading markets for HNI term insurance demand, reflecting the importance of technology, financial services and entrepreneurial hubs in driving purchases.
In terms of average sum assured, Mumbai, Gurugram, Faridabad and Bengaluru rank among the leading cities, indicating that the volume of policies purchased and the size of coverage sought vary across markets.
Women accounted for around 18pc of HNI term insurance buyers last year, while men made up the remaining 82pc, according to Policybazaar.
Payment preferences also point towards a desire to complete premium obligations over a shorter period. Around 40pc of HNI customers choose regular-pay policies, while the majority prefer limited-pay plans or options that allow premiums to be paid until the age of 60.
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