India faces a life insurance protection gap of over 17 trillion dollars, with 83 percent underinsured.

This surge released pent-up demand from customers. Industry sales had been lower earlier in anticipation of the tax change. Overall new business premiums grew, but policy numbers declined.

Life Insurance Corporation of India (LIC) on Friday said it has paid a dividend cheque of Rs 7,324.34 crore to Finance Minister Nirmala Sitharaman for the 2024-25 financial year.

A proposal has been made to exempt premiums for life and health insurance from Goods and Services Tax (GST), a move that could bring down costs and boost insurance penetration.

The move comes in response to grievances received by the Centralized Processing Centre (CPC) in Bengaluru, which highlighted that returns from various assessment years were wrongly invalidated due to system glitches.

For high-net-worth NRIs, term insurance is crucial for securing their family's financial future, considering factors like inflation and global living costs. Indian insurers offer cost-effective policies with benefits like GST waivers, premium refunds, and worldwide coverage.

The GST Council is expected to announce a significant tax cut on life and health insurance premiums in its upcoming meeting. The move could lower costs for policyholders and boost insurance penetration across India.

As ITR filing for AY 2025-26 picks up pace, reports suggest the government may delay issuing tax refunds until past assessments are cleared under Section 245. Experts warn this move could hurt honest and salaried taxpayers who rely on timely refunds for financial planning and liquidity.

Common mistakes when buying insurance: Smart investors often make common mistakes when buying insurance — such as underestimating the importance of term insurance, relying solely on employer-provided cover, or prioritising lower premiums over policy features and claims support — which can result in inadequate coverage and financial vulnerability.