Business Standard

High-value life insurance policy sales fail to pick up in Feb-March

This is despite a new tax being introduced from April 1

family insurance

Subrata Panda Mumbai
Life insurers have so far not seen any serious pick up in high-value non-par policy sales after the Centre decided to tax proceeds of such policies sold from April 1, 2023. 

Experts had predicted a sales pick up before the tax regime came into effect.

The policy was announced in the Budget, wherein the government said it will tax proceeds from high-value life insurance policies (non-ULIPs).

This move may help plug the arbitrage that high-net-worth individuals (HNIs) use to get tax-free returns on their insurance policies through Section 10(10D) of the Income-Tax Act.

Following the Budget announcement, analysts at various

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First Published: Mar 22 2023 | 8:50 PM IST

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