The average annual premium per in-force life insurance policy rose 42.6% between FY2021 and FY2025 to Rs 22,195 from Rs 15,567, according to an analysis of Insurance Information Bureau (IIB) data. The number of in-force policies remained broadly stable at around 343 million over the period.
The rise reflects a shift towards higher sum-assured categories. Policies with a sum assured of Rs 2 lakh or less fell to 53.6% of the total in FY25 from 65.1% in FY21, while the number of policies with cover exceeding Rs 50 lakh jumped 68% to 7.4 million, generating annual premium of Rs 97,500 crore.
Kamlesh Rao, chairperson of the Insurance Awareness Committee (Life), said the data shows policyholders who stay invested increasingly strengthen their protection as their lives and responsibilities evolve.
Sources: Economic Times, Financial Express (August 14, 2026)