2 weeks ago
India's Average Life Insurance Premium Rises 42.6% in Five Years
People in India are buying more life insurance, and they are paying more for it.
Life insurance is money paid to your family if something bad happens to you.
Over the last five years, the average amount people pay each year for their policies went up by about 42 percent.
In 2021, people paid about 15,567 rupees on average, and by 2025 that number grew to 22,195 rupees.
More people are choosing policies that pay out bigger amounts of money.
The number of very big policies, worth more than 50 lakh rupees, grew by 68 percent.
This shows that families want to protect themselves better as their lives change.
The data comes from the Insurance Information Bureau of India, which tracks insurance numbers.
People are earning more and learning more about insurance, and big events like the Covid-19 pandemic made many families think about protection.
Still, many people in India, especially younger adults, do not have enough insurance coverage yet.
Average annual life insurance premium per policy in India rose 42.6%, from ₹15,567 in FY21 to ₹22,195 in FY25.
Total in-force life insurance policies remained broadly stable at around 34.3 crore over the five-year period.
Policies with sum assured above ₹50 lakh grew 68%, from 44 lakh in FY21 to 74 lakh in FY25, generating ₹975 billion in annual premium.
The share of policies with sum assured of ₹2 lakh or less fell from 65.1% in FY21 to 53.6% in FY25.
87% of India still faces a significant life insurance protection gap, which exceeds 90% among those aged 18-35.
- Who
- Indian life insurance policyholders, with data compiled by the Insurance Information Bureau of India and comments from Kamlesh Rao, Chairperson of the Insurance Awareness Committee-Life.
- What
- The average annual premium per life insurance policy increased by 42.6% over five years as policyholders moved towards higher coverage levels.
- Where
- India.
- When
- Between FY21 and FY25, with the analysis released on August 15, 2026.
- Why
- Growing awareness of life insurance, rising incomes, inflation, evolving life stages and responsibilities, and the Covid-19 pandemic prompted reassessment of financial resilience, while insurers introduced more tailored products.
Key facts
- Average premium increase (FY21-FY25)
- 42.6%
- Average annual premium FY21
- ₹15,567
- Average annual premium FY25
- ₹22,195
- Total in-force policies
- ~34.3 crore (broadly stable over 5 years)
- Policies with sum assured above ₹50 lakh
- Grew 68%, from 44 lakh to 74 lakh
- Annual premium from ₹50 lakh+ policies
- ₹975 billion
- Life insurance protection gap
- 87% overall; over 90% among ages 18-35
- Data source
- Insurance Information Bureau (IIB) of India, compiled by Insurance Awareness Committee (IAC)-Life
Quotes
Kamlesh Rao
Chairperson, Insurance Awareness Committee‑Life
“The IIB data clearly demonstrates that Indians who stay invested in life insurance increasingly recognise its value and strengthen their protection as their lives and responsibilities evolve.”
thehindubusinessline.com










