Insurers pay more for quitting than dying (opens the source in a new tab)
- Of ₹6.3 trillion paid in FY25, death claims were just 7%; surrenders took 37% and maturities 35%.
- Only 48% of policies last five years, but 71% of those bought online do, writes Dhirendra Kumar.
- First-year commissions on savings-linked policies average 25–37% of premium; renewals just 0–5%.
- 7%
- of payouts: death claims
- 5×
- surrenders vs death claims
Why it matters For pure protection, the writer backs plain term cover.
Other side Insurers say these are savings products, bought for the maturity payout rather than the death benefit.
Source:Mint (free to read) ↗