India’s wealthy are buying term insurance in higher numbers, and they’re doing it younger than previous generations.
A new industry report titled “India’s Affluent Double Down on Protection,” published by Policybazaar, shows that HNI term insurance demand has doubled over the past two years. Over five years, the segment has grown more than 200%. The broader term insurance market, by comparison, grew about 50% in the same period.
Did You Know: HNI term insurance demand has grown more than 200% over five years, against 50% growth in the broader term market over the same period.
₹3 Crore Covers Up 45% Year on Year
Bookings for ₹3 crore covers jumped 45% year on year. Salaried HNIs are opting for an average cover of ₹2 crore, while self-employed buyers and entrepreneurs average about ₹1.6 crore. Non-HNI buyers sit at ₹1 crore.
At the top end, 5% of affluent buyers are choosing policies worth ₹5 crore or more.
Young Buyers Are Driving the Numbers
About 57% of HNI buyers fall in the 30-39 age bracket. Buyers under 35 are entering the market earlier than previous generations, locking in lower premiums and matching coverage to their earning trajectory rather than buying reactively in their 40s or 50s.
Quick Tip: If you’re in your 30s, buy now rather than waiting for a milestone like a home loan or a child. Your premium is fixed at your current age — every year you delay makes it more expensive.
“Younger HNIs, especially those under 35, are entering earlier, opting for materially higher covers, and aligning protection with rising incomes and long-term liabilities,” said Varun Agarwal, Head of Term Insurance at Policybazaar.
Marriage, Not Children, Now Triggers the Purchase
The report found a behavioural shift in what prompts people to buy. Marriage has overtaken childbirth as the primary purchase trigger for HNI term insurance. Couples taking on joint liabilities early (home loans, business loans) are treating protection as an immediate priority rather than something to sort out after a child arrives.
Watch Out: Many buyers still wait for a child to arrive before buying term insurance. By then, premiums are higher and any new health conditions that developed in the interim could affect eligibility or attract loadings.
Bengaluru and Hyderabad Lead Demand
Bengaluru accounts for 16% of all HNI term demand. Hyderabad follows at 9%. Pune and Mumbai each contribute 7%. Together, Bengaluru and Hyderabad represent a quarter of all affluent term purchases in the country.
The geographic pattern tracks India’s tech and startup corridors, where high salaries arrive early in a career and buyers are comfortable purchasing online.
Fact: Bengaluru accounts for 16% of all HNI term insurance demand in India — more than any other city, including Mumbai.
What This Means If You’re a High Earner in Your 30s
The data confirms what financial planners have said for years: buy early, buy enough. Your premium locks in at today’s age, and your cover should match where your income is headed rather than where it was five years ago.
If you’re evaluating high-value covers, our complete guide to HNI term insurance covers policy stacking, underwriting for large covers, and when ₹5 crore may not be enough. If you’re in your 30s and just starting to think about this, the under-40 buying guide lays out why timing matters. And if you’re unsure about the right number, the coverage calculator or coverage amount guide can help you work it out.
Source: “India’s Affluent Double Down on Protection” report, February 2026, via Business Today.