By: Tarun Chugh, MD & CEO Bajaj Allianz Life

India’s economic growth presents immense opportunities for the insurance sector to enhance financial resilience. Anticipated income tax cuts in the upcoming budget could boost disposable income, driving higher life insurance penetration.

With the elderly population (50+) projected to grow by 22% in the next six years, incentivizing pension product is imperative.

Aligning tax deduction of life insurance annuity products with the National Pension Scheme (NPS) and addressing the issue of tax on principal component on annuity products can evolve retirement needs effectively.

We urge the government to introduce separate tax deduction for term insurance and extending the tax deduction on life insurance premium under new tax regime as well. These measures will empower individuals to build robust financial safety nets and advance the vision of ‘Insurance for All by 2047’, thereby fostering long-term financial security and inclusivity.