India’s HNI term insurance bookings double since 2023; younger buyers drive growth, shows new report
India’s high net-worth individuals are purchasing higher life insurance coverage, with term insurance bookings in this segment doubling since April 2023 and the average sum assured rising 30%, according to Policybazaar data.
The data also shows that less than 5% of HNIs opt for term plan with return of premium (TROP), indicating that most prefer insurance primarily to protect their families financially rather than get their premiums back at maturity.
Many people buy term insurance to ensure their families remain financially secure in the event of their untimely death. A term insurance policy is an agreement between the insurance company and the policyholder for a fixed period, typically ranging from 10 to 40 years, during which the insurer pays the death benefit to the beneficiaries if the policyholder passes away.
Younger HNIs drive growth
The insurance marketplace also said that younger affluent buyers are emerging as a key growth cohort, with customers below the age of 35 accounting for nearly 50% of high net-worth term insurance customers.
This emerging trend also challenges the traditional perception that high-value life insurance is primarily an older HNI’s purchase. “This growth is not being driven solely by existing policyholders, topping up their protection, but by younger HNIs entering the market for higher protection,” the report noted.
Meanwhile, women accounted for around 18% of HNI term insurance buyers in 2025, while men made up the remaining 82%, the data showed.
HNIs opt for life insurance cover of up to ₹25 crore
Policybazaar’s data shows a 25% rise in policies with a sum assured of ₹3 crore or more, indicating growing demand for high-value life insurance among HNIs. Around 5% of HNI customers choose cover of ₹5 crore or above, while 1.5% opt for at least ₹7 crore and 1% go for cover of ₹10 crore or above.
The company said demand for high-value protection has strengthened further following the introduction of the zero-GST regime, though it did not provide a separate breakdown of the increase attributable to the tax change.
Among salaried HNI customers, the average sum assured is around ₹2 crore, according to Policybazaar. The highest sum assured purchased by an HNI customer on its platform stands at ₹25 crore.
HNI term insurance demand is strong across major technology, financial and entrepreneurial hubs with Bengaluru, Hyderabad leading in policy demand.
In terms of average sum assured Mumbai, Gurgaon, Faridabad and Bengaluru rank highest, highlighting differences in both the volume of policies purchased and the level of life cover customers opt for, the repor stated.
What riders do HNI prefer?
Some HNI customers are opting for additional riders on their term insurance policies to extend coverage beyond the standard death benefit.
According to Policybazaar data, 20% of HNI customers choose an accidental total and permanent disability (ATPD) rider, while 15% opt for critical illness cover. Accidental death benefit riders are selected by 9% of wealthy customers and 8% choose a waiver of premium (WOP) rider.
These riders offer additional protection against specific risks, subject to the specific policy’s terms and conditions. Critical illness and disability riders can help policyholders manage certain financial risks that are not typically covered by a standard term life insurance policy.
“India’s HNI term insurance market is seeing a clear shift towards higher protection, with affluent customers increasingly opting for larger life covers,” said Varun Agarwal, Head of Term Insurance at Policybazaar. He also noted that certain add-ons such as critical illness among others, can play an important role in protecting family wealth, meeting financial commitments and securing their dependents’ future when the policyholder is not around.
