India's life insurers face a 75% rise in mortality claims since FY20, with a 25% drop in covered lives, pushing firms to prioritize ULIPs over term insurance.

• Mortality claims hit 1.085 million in FY25, exceeding post-COVID peaks for top insurers like HDFC Life and ICICI Prudential.
• Older policyholders, pre-pandemic underwriting gaps, and long-term health effects drive higher death claims post-COVID.
• Insurers shift to ULIPs (e.g., SBI Life at 67% APE) to offset term insurance risks amid shrinking group coverage.