• Term risk assessment: Insurers strictly evaluate term insurance because the sum assured is typically 300 to 400 times the premium paid, requiring thorough checks of both financial and physical health.
• Data verification process: Underwriting has become easier as insurers can pull financial records from PF and GST databases with customer consent, alongside physical medical checkups to verify health status.
• Portfolio-level pricing: Term plan pricing is primarily set at the portfolio level based on mortality expectations across the population, with minor adjustments made for an individual's specific health and financial profile.
• Salary slip flexibility: Insurers can still provide term insurance coverage to applicants even if they do not possess a formal salary slip.