Kathmandu. In recent years, there has been a trend towards more inclusive term insurance coverage in India.
According to new data from Policybazaar, there has been a significant increase in rider adoption, especially in South India and among young and urban people. “South India leads the country in rider adoption with an engagement rate of around 46%,” the report said, adding that North India has an engagement rate of 23%. ’
“Accidental Total Permanent Disability (ATPD) and Accidental Death Benefit (ADB) riders are driving a surge in demand in southern metros and tier-2 cities,” Policybazaar said.
The rider adoption rate in the eastern region of India is around 32% to 34%. Whereas in the West, it is stable at about 30% to 31%.
Gender patterns in India are also becoming clearer. Men are more likely to add riders to their term plans, especially in ADB and ATPD. Women are increasingly opting for serious disease (CI) riders that include cancer screening. This reflects a growing awareness of the long-term health risks.
CI riders are the most popular in metropolitan markets such as Hyderabad, Bengaluru, Kochi and Mumbai. Younger and higher-income consumers are more aware of lifestyle diseases.
Demand for discounts from premium () riders in India has also increased. Attachment rates increased from 4.7% in July 2025 to 6.7% in October 2025. It was mainly operated by Hyderabad and Bengaluru.
Women are the most likely to adopt. It aims to keep the policy active in times of disability or income constraints.
ADB riders are the most common add-on for policies covered less than Rs 2 crore. However, many customers at higher cover levels are turning to CI riders for medical financial protection. The ATPD remains the most engaged rider overall. This increased from 20.4% in July 2025 to 21.4% in October 2025.
Policybazaar has reported a significant increase in the NRI segment. ATPD involvement reached 42.1% in October. This reflects the strong demand for disability coverage among foreign clients in India who prioritize long-term risk management for their families.
Varun Agrawal, Business Head, Term Insurance, Policybazaar.com, said, “The data points to the growing preference of Indian customers for greater financial security. Disability and disease covers are becoming almost identical to basic death benefits. ’
