The existing tax benefits remain the same. In Section 80C, premiums can be deducted up to 1.5 lakh. Under Section 10 (10D), maturities and death benefits are tax-free (conditions apply). This combination of low premiums and tax benefits makes insurance a compelling option for long-term financial planning.
Whether it’s a LIC policy, a private insurance company plan, a ULIP or a donation plan, you’re now more valued money. Insurance has become one of the most innovative tools in the financial planning kit.
From a regulatory and industry perspective, Irdai (India’s Insurance Regulation and Development Authority) welcomed it as a boost to financial inclusion. CBIC The Central Committee of Indirect Taxes and Customs) calls it a step to simplify GST reform.
Although reinsurance providers are looking forward to adjusting their pricing model, overall we can see policy adoption and industry trends growth. Analysts are forecasting increased market share, increased competition and more innovative insurance products.
