Premiums will increase starting in March. How much will the insurance costs go up? Term life insurance enters the "price hike season"!

The Spring Festival holiday has just ended, and the Wenzhou insurance market has experienced a noticeable wave of price adjustments. Recently, reporters learned from channels such as Ant Insurance and several local insurance companies that starting March 1st, the premiums for many popular online term life insurance products have increased, with the rise generally around 7%. This is the first industry-wide increase in the term life insurance market in recent years. Although the monthly cost increase for individual policyholders is limited, this significant signal of adjustment is bringing term life insurance, a staple as the family’s economic pillar, back into the public spotlight.

Market Situation: Old Policies Removed, Prices Increased

“Sunshine Life’s ‘National Coverage’ has increased by about 7.2%, and the ‘Zhen Ai’ series from Tongfang Global Life Insurance has also been raised by 7% to 8%,” insurance planner Li Yucheng told reporters. These two products have high sales volume in Wenzhou, and the new versions launched on March 1st have already adjusted their pricing.

This change is not an isolated phenomenon but part of the industry’s overall behavior. Li, sales manager at Taiping Pacific Life Insurance Wenzhou branch, said that this adjustment is not an exception but a general industry trend. “It’s not just for term life insurance; some future financial insurance products will also see price increases. Several insurers in Wenzhou have completed pricing adjustments for term life insurance, and March is a peak period for price changes.”

The impact of price adjustments on costs is quite direct. The reporter tested insurance data on the Wenzhou Ant Insurance platform and found that a 23-year-old woman purchasing the ‘National Coverage - Term Life Insurance’ with a coverage of 2 million yuan, protection until age 60, and a 20-year payment period paid 150 yuan monthly and 1,664 yuan annually on February 28. After the price increase on March 1, the same plan’s monthly premium rose to 160 yuan, and the annual premium increased to 1,778 yuan, with a 10 yuan monthly and 114 yuan annual increase, directly raising the cost of insurance.

Although the absolute increase is small, this broad rise marks a shift away from the past market strategy of low-price, high-volume growth, moving toward a sustainable development stage based on risk-based pricing.

Reasons for the Price Increase

Why do premiums rise despite longer life expectancy?

Many consumers are confused by this: the new life table implemented in 2026 shows an overall increase in life expectancy and a decrease in mortality rates. Why, then, does the price of term life insurance, which centers on death benefits, not decrease but instead increase?

“This is not a contradiction but a re-evaluation from the ‘average longevity assumption’ back to the ‘real risk distribution,’” industry insiders explain. The core logic behind the price increase involves two main factors.

First, structural adjustments brought by the new life table. The ‘China Experience Life Table (2025)’ (the fourth set of life tables), effective from January 1, 2026, does not simply reflect longer overall lifespans but provides more detailed calibration across different age groups and risk segments. Data shows that mortality improvements in middle and young ages are less than previous assumptions. Since term life insurance is a pure risk product, its price is almost entirely determined by mortality parameters. When actuarial bases are revised and risk assessments become more cautious, premiums naturally adjust upward.

Second, the impact of tax policy changes on costs. According to the latest VAT preferential policies in 2026, term life insurance, which only covers death or total disability and does not return principal at maturity, is not included in the tax exemption scope for personal insurance over one year. It is subject to a 6% VAT. This additional tax burden is ultimately passed on to consumers through pricing, increasing premiums.

Recommendations for Coverage

Leverage still valuable, insure as needed

After the premium increase, whether term life insurance is still worth purchasing has become a key concern. Experts generally believe that the high leverage characteristic of term life insurance remains unchanged, and it still holds significant value for those at the peak of family responsibilities.

“Don’t give up on coverage just because premiums slightly increase. The core is to address personal and family risk gaps,” said Li, sales manager at Taiping Pacific Life Insurance Wenzhou branch. Since term life insurance does not serve as a savings product and only covers death risk, it is one of the most efficient protection products in the insurance system.

For example, a 32-year-old male applying for a policy with 2 million yuan coverage, protection until age 60, and a 20-year payment period, after the price increase, pays about 1,682.4 yuan annually. The leverage ratio remains over 59 times, maintaining the core advantage of “high coverage, low premium.”

Industry experts recommend insuring based on needs: prioritize coverage for the family’s main breadwinner; coverage amounts should include mortgage, children’s education, and other debts, typically between 1 million to 3 million yuan; terms can extend to age 60 or 70, or cover mortgage and dependent children.

For middle-aged individuals with large debts, minor children, or elderly dependents, term life insurance remains an essential risk management tool. In the context of price adjustments, it is more important than ever to evaluate rationally, plan scientifically based on actual family circumstances, and avoid blind following or stepping back due to price hikes.

Source: Wenzhou Evening News

Original Title: Premiums Rise from March, How Much Do Insured Costs Increase? Term Life Insurance Enters “Price Hike Season”!

Reporter: Yu Tingting

This article is reprinted from: Wenzhou News Network 66wz.com

【Source: Wenzhou News Network - Instant News】