Insurance companies yet to see fire sale of high-value life policies

Expect higher sales of such policies in March

Many life insurance companies are yet to see a sharp spike in the sale of high-value policies as was widely expected in the aftermath of the government’s decision to tax income from insurance policies having an aggregate premium above Rs 5 lakh in a year. This is for policies issued on or after April 1, 2023.

Insurers expect March, which is typically the busiest month for life insurance companies, to see increased sales of such policies before the government’s proposal kicks in.

After the Budget announcement, analysts at various brokerage houses had reckoned that high-value non-par guaranteed products could see