Younger HNIs drive Rs 3 cr+ term covers, salaried opt Rs 2 cr as market grows 45% YoY

Younger high-net-worth individuals (HNIs) under 35 are increasingly driving demand for high-value term insurance covers, signalling a structural shift in how India’s affluent approach financial protection. At the same time, salaried HNIs are opting for deeper cover sizes than entrepreneurs, and the overall HNI term insurance segment has doubled over the past two years, according to Policybazaar’s latest report, India’s Affluent Double Down on Protection.

The data shows that ₹3 crore cover bookings have risen 45% year-on-year, reflecting rising appetite for large-ticket protection among younger buyers. On average, HNIs are opting for ₹2 crore covers, compared with ₹1 crore among non-HNIs. Notably, 5% of affluent buyers are now choosing policies worth ₹5 crore or more — an indicator that high-value protection is gradually moving toward the early mainstream in wealthy portfolios.

The shift is particularly visible among those below 35 years of age, who are entering earlier in their income cycle and aligning protection with long-term liabilities. Overall, 57% of HNI buyers fall in the 30–39 age bracket, reinforcing the trend that insurance planning is now being synchronised with peak earning years rather than delayed.

Salaried HNIs

Income structure appears to be influencing cover size decisions. Salaried HNIs are purchasing an average cover of ₹2 crore, compared to ₹1.6 crore among self-employed affluent buyers.

This differential suggests more income-replacement-led sizing among salaried professionals, whose earnings are predictable and directly insurable. Entrepreneurs, by contrast, often factor in business equity, asset buffers and diversified wealth sources when determining protection levels.

Segment growth

The HNI term insurance category has recorded 100% growth over the past two years and more than 200% growth over five years. The segment is currently expanding at 45% year-on-year, significantly faster than the broader term insurance market, which has grown around 50% in the same two-year period.

The doubling of the segment reflects rising awareness of income replacement risk, lifestyle-linked liabilities, and inflation-adjusted financial planning among affluent households.

Varun Agarwal, Head of Term Insurance at Policybazaar, said the market is witnessing a behavioural reset.

“We are witnessing a clear shift in how India’s affluent approach protection. Term insurance is increasingly being positioned as the starting point of financial planning rather than an afterthought. Younger HNIs, especially those under 35, are entering earlier, opting for materially higher covers, and aligning protection with rising incomes and long-term liabilities. The growing adoption of ₹3 crore-plus covers reflects a more mature understanding of income replacement and wealth continuity among high-income households,” he said.

Marriage emerges as key trigger

Another notable trend is the timing of purchases. Marriage has overtaken childbirth as the primary trigger for buying term insurance among HNIs. Protection decisions are increasingly initiated immediately post-marriage, reflecting structured joint liability management and estate alignment.

Geographically, demand is concentrated in technology-driven income clusters. Bengaluru accounts for 16% of HNI term demand, followed by Hyderabad at 9%, while Pune and Mumbai contribute 7% each. Bengaluru and Hyderabad together represent 25% of affluent term purchases.

Overall, the findings suggest that protection is no longer treated as a tax-saving add-on but is becoming a foundational pillar of financial planning among India’s high-income earners.