Key Insights at a glance:

• Men lean on accident riders, women on critical illness

• South dominates rider uptake — over 45% customers add extra protection layers

• For those opting higher cover, Critical Illness riders gain traction over Accidental Death Benefit.

• Hyderabad leads nationwide at ~52–56%, indicating the strongest preference for bundled protection.

• NRI segment shows stable demand at ~40–43%, reflecting higher awareness for comprehensive coverage and long-term risk management.

South outpaces North in rider adoption — 2x higher attachment (46% vs 23%)

• South leads consistently with the highest rider penetration averaging around 45–47%, driven largely by ATPD (Accidental Total Permanent Disability) and ADB (Accidental Death Benefit) rider, reflecting strong awareness and preference for holistic protection in southern metros and Tier 2 markets.

• East shows steady growth maintaining ~32–34% rider attachment, West (Mumbai, Pune, Ahmedabad, etc.) stays moderate at ~30–31%.

• At 21–23%, the North’s lower rider penetration signals a high-growth opportunity that can be unlocked with stronger awareness and engagement initiatives.

Gender divide sharpens: CI riders rise among Women as Men favor AD & ATPD covers

• Male customers show a higher overall preference for term insurance riders (30.3% Vs 25.8%).

• Men show a stronger preference for Accidental Death and Total Permanent Disability riders, while women who are now actively purchasing term insurance, are increasingly opting for Critical Illness riders with cancer screening features that offer long-term health security.

Critical Illness Rider is skewed toward metro cities and younger salaried audiences

• Hyderabad stands out at 12–13% while Bengaluru 10–11% showing strong uptake of CI rider attachment. Both these regions are home to affluent, younger, highly paid consumers who are acutely aware of the financial risks posed by lifestyle-induced illnesses.

• Kochi 9–12% and Mumbai 7–10% also shows a healthy adoption of CI rider. This indicates that one in five new policies in Kochi include the CI rider, suggesting a strong regional focus and high customer health awareness.

Waiver of Premium Gained Momentum by 42.5%, seeing increased traction among women

• The strong increase of 42.5% in the total Waiver of Premium attachment climbed from 4.7% in July '25 to 6.7% in October '25.

• Key metropolitan and affluent centres such as Hyderabad (15.1% in Oct ‘25) and Bengaluru (11.9% in Oct ‘25) heavily influence the overall 42.5% growth.

• Increasingly, customers are ensuring a policy remains active during periods of disability. Notably, women exhibit the highest adoption of WOP, indicating a strong focus on maintaining long-term protection even in scenarios where they may be unable to continue premium payments.

For higher cover, Critical Illness gain traction over Accidental Death Benefit (ADB) rider

• For cover below ₹2 crore, most buyers prioritise Accidental Death Benefit (ADB) riders. This reflects focus on basic income protection for dependents in case of unforeseen events.

• As cover amount rise, there’s a clear shift towards Critical Illness (CI) riders. These customers tend to be more financially secure and are seeking comprehensive health-linked protection that safeguards both earning potential and long-term medical expenses.

NRI Leads Disability Rush with 42% ATPD Rider Attachment

• ATPD has the highest overall attachment among the three riders (ADB, ATPD, WOP).

• The Total attachment rate for ATPD was 20.4% in July '25, and it showed stability, ending at 21.4% in October '25 translating that, on average, more than one in five policies included the ATPD rider.

• Customers rely on the base policy for death coverage; they view disability protection as the most critical need for immediate, living benefits.

• In the NRI segment, the ATPD rate is extremely high at 42.1% (Oct '25), reinforcing the finding that non-resident customers are highly focused on long-term risk management to ensure their family's financial security in case of catastrophic disability.

Spokesperson’s Quote

Varun Agarwal, Business Head, Term Insurance, Policybazaar.com said “term insurance riders offer enhanced protection for events like accidental death, critical illness, disability, or terminal illness, which provides an additional financial cushion beyond the base policy's death benefit. Our data reveals a definitive market movement toward comprehensive term protection in India. The Regional patterns shows South leading, with rider adoption twice as high as the North. Moreover, the 42.5% surge in Waiver of Premium attachment and the continued dominance of disability riders like ATPD led by a 42.1% uptake among NRI customers underscore that consumers are now prioritizing financial security against income loss due to disability and critical illness equally over the base death benefit. This is a clear signal that the risk-aware, affluent segment is reshaping the term insurance landscape”.