Max Life Insurance Company Ltd. (“Max Life” / “Company”), has announced a strong compound annual growth rate (CAGR) of 33% in individual sum assured over the past five financial years. Sum assured or guaranteed death benefit is the guaranteed amount that the beneficiary of a life insurance policyholder will receive in case of their untimely demise and is an important parameter that reflects the human life value an individual attaches to his life.
As per Max Life’s recent ‘India Protection Quotient 3.0’ conducted in association with Kantar, 59% of term insurance owners in urban India felt that their term plan cover was insufficient to safeguard their family’s future. Also, with a greater focus on financial protection in the backdrop of the pandemic, urban India’s term insurance buyers are increasingly searching for adequate sum assured to secure their financial goals.
In line with this insight, Max Life has been working towards helping customers understand the importance of buying the right protection and sum assured. These efforts have helped the Company witness robust growth in individual sum assured. During FY21, Max Life crossed an important milestone of securing two lakh crores in individual sum assured for the first time since its inception. The average sum assured of individual pure protection policies grew by 10% Year-on-Year to ~ INR 81 lakhs. In the fiscal, Max Life has also recorded a 13% year-on-year growth in average sum assured that stood at ~ INR 35 lakhs. This has allowed Max life to record a market share of ~16% in terms of individual sum assured among the top 10 private life insurers in FY21.
Commenting on this accomplishment, Mr. V Viswanand, Deputy Managing Director, Max Life said, “The ongoing pandemic has highlighted that the future belongs to those who plan and prepare well. Hence, it becomes necessary to understand the concept of sum assured to make a sound financial decision regarding your life insurance policy. Sum assured is the single most important parameter that can affect the accomplishment of the life goals of your loved ones in your absence. Here we have also observed that customer loyalty among those who understand and know their sum assured is significantly higher than those who do not recall.
With Max Life’s commitment towards delivering the right sum assured, the aim is to help customers understand and embrace the real value of their lives. Max Life’s constant improvement in sum assured metrics demonstrates its focus on enabling pertinent financial protection to the society, that helps navigate the challenges of the future.”
Today, we witness that most consumers look at the premium payable when purchasing a term insurance plan. However, this action often leads to the purchase of a lower sum assured that is inadequate to protect the family in the face of uncertainties. In this regard, Max Life has offered consumers visiting its website an easy-to-use ‘Real Value Tool’ that helps assess their financial value by answering six simple questions and arrive at the right amount of sum assured that is needed. In case the customer chooses an insufficient sum assured due to any reason, the Company then provides the option of increasing the same by topping up either with another life insurance policy or with specific riders that offer additional protection benefits.