Term Insurance for HNIs

It is no secret that high net-worth individuals (HNIs) are viewing term insurance options with renewed interest, particularly for their dependents. With customised policies grabbing their attention, it is clear that term insurance is viewed as a safe shield when one is looking at building long-term wealth and enabling legacy security.

Who are HNIs and what is the meaning of HNIs? 

Wondering who are HNI customers in India and who comes under HNI category? High net-worth individuals, or HNIs as they are termed, pertain generally to the financial sector. They are individuals with an investible surplus and assets that exceed a substantial amount. Typically, they are in high demand as they maintain stocks, bonds and liquid assets and much more.

Who are Ultra-High-Net worth individuals in India?

In 2023, news reported the rise of ultra-high-net worth individuals owning net assets of around $30 million or more. In India, this category has soared to 11 percent in 2022, according to a Business Standard report. The growth of this segment has been led by Bengaluru, at 17.1 percent and followed by Delhi at 12.4 per cent and Mumbai at 9 percent. The report highlights that 69 per cent of India’s super rich individuals are set to witness an increase of over 10 per cent in their net worth in the following year.

Rise of HNIs: Why Personalised Insurance Solutions Matter

Increasingly, HNIs prefer personalised solutions, which is a key reason term insurance is appealing to them. Other factors that weigh in favour of term insurance is how it remains a simple and pure life insurance product which provides financial safety to the family or nominee upon the demise of the person insured. The lack of a saving component in term insurance has not been a deterrent to HNIs. This may be attributed to the fact that term plans provide better value in terms of offering substantial coverage at highly affordable premiums. 

Additionally, insurers offer optional riders with term insurance; thereby, appealing to their needs such as critical illness cover or accidental death benefit.

What makes term insurance appealing is also its substantial coverage at highly affordable premiums. 

Summing Up

Term insurance is catching the interest of HNIs. For insurers, a closer look at the demographics of HNI buyers would also pinpoint to their increasing share of disposable income. This further augments their long-term commitment to invest in term insurance that is convenient, personalised and digitally enabled. For HNIs and ultra-high-net worth individuals, the quality of personalised digital journeys matter. 

At Zopper, we offer seamless technology-powered insurance solutions that drive revenue and growth while propelling long term wealth creation. 

Visit our website to explore the ecosystems we serve and book a demo instantly.