Online term life insurance grows robustly

Source: Xinhua | 2018-09-20

The explosive growth of online term life insurance policies, favored by the younger generation, is due to the regulator relaxing rules over the sector, according to industry insiders.

In July 2015, the China Insurance Regulatory Commission eased the rules governing the booming Internet insurance business to allow insurers to expand their business into personal accident injury insurance, term life insurance and ordinary whole life insurance in areas where they have not formed branch offices.

Life insurance is primarily used to support the policyholder’s dependents in the event of his or her death. Unlike whole life insurance which may cost the insured more in premiums, term life insurance plans provide risk protection at minimal cost and are favored by the younger bread-winners.

As much as three fifths of buyers for term life insurance are between 30 and 39 years old and 60 percent of them are males, according to previous data.

Most of the buyers are house owners servicing a mortgage, business owners and middle class consumers who have a strong demand for the protection such policies offer, industry insiders said.