The life insurance plan is scheduled to be increased by April 1. However, due to delays in the renewal of reinsurance companies’ contracts and approval of new products for some insurers, there is a delay of up to 15 days. For this reason, term insurance premiums will increase at any time between April 15 and 30. Sources related to the insurance sector said this.
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The insurance company determines the premium rates of term insurance based on the different ages of the probability (death) of its customers. In Western countries, insurance companies do this based on real data, but in India it is done based on mortality estimates. The insurance company usually works on an offer to raise enough money through premiums paid by their policyholders.
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With this money collected, they pay insurance claims to affected policyholders who die each year. In this way, in a life insurance offer, a group contributes to the loss of an individual. The majority of this fund is reinsurance from reinsurers. Therefore, renewing or renegotiating the reinsurer’s contract will affect the premium.
