This could well be the beginning of a rate war in the insurance space. Birla Sun Life Insurance is set to launch a new term insurance plan that will be the cheapest ever for those with healthy lifestyles, even as competition compels life insurers to find innovative ways of reducing prices before tables on revised life expectancy data are finalised

A term insurance policy is one that provides only life protection cover for a fixed period. Until now, the best rates offered were ‘standard’ or ‘ordinary’, wherein companies further loaded the premium if the policyholder was found to be suffering from smoking or drinking addiction, blood pressure, diabetes or obesity.

This is the first time that an insurance company is offering a product that rewards those with good family health history and healthy behaviour, with a discount. Such policies are present internationally. For instance, insurance products in Australia offer discounts to those who go to gymnasiums regularly. These policies even offer coupons, entitling policyholders to discounts on gym membership.

“The underwriting process for the product would be very rigorous,” Fabien Judy, designer of the product and chief actuary, Birla Sun Life, told ET. “Underwriting processes for life policies range from taking a sample of all bodily fluids and testing them at one end, and asking the prospect to blow on a mirror at the other end. The underwriting for this product is certainly not the kind where you use the mirror.”

Mr Judy did not disclose the extent to which the company could discount the new product, but said it would be the cheapest yet in the life insurance market. At present, Birla Sun Life Insurance’s term insurance rates are almost identical with those offered by Life Insurance Corporation (LIC) on high value policies.

Recently, Birla Sun Life Insurance (BSLI) launched protector plans in two variants. BSLI Protector Plan and Protector Plus Plan. They offer flexibility to customers by giving them the option to hike their sum assured over a period arising out of increasing responsibilities and inflation, at no extra cost. follow the link for more

To understand the nuances of different types of policies and its price, feel free to seek the help of InsuranceMall to select the right products based on your need. Or you can directly call them on +91-22-30503050

InsuranceMall is the leading and first online insurance broker in India. With the motto to make our customer delighted and proud about their decisions, we’re always there to help them with best possible policy