Life insurance to cost less as mortality rate declines

With a significant fall in the mortality rate in India, the cost of life insurance premiums is set to come down to a comfortable level. All working professionals in the age group between 22 and 50 have reason to cheer, as they have to pay less premium in the coming fiscal starting from April 1, 2019. According to the revised Indian Assured Lives Mortality Table 2012-14, conducted by the Institute of Actuaries of India (IAI), mortality rates among the insured, for those aged between 22 and 50 years, fell 4 per cent-to-16 per cent in 2012-14 from 2006-08. Earlier, the industry was using the 2006-08 table as the reference frame for pricing life insurance products. Now the new data will be used for reference. The Mortality Table has been tabulated on the basis of data from 24 life insurance companies for the period of investigation, from April 1, 2012 to March 31, 2014.