Life insurance companies expect demand for high-ticket non-linked insurance policies, with annual premium of more than Rs 5 lakh, to increase this month for pre-booking of such policies to escape the impact of taxation change proposed in the Union Budget.
The government, in the FY24 Budget, proposed to tax income from all non-ULIP products i.e. par and non-par where aggregate insurance premium paid in a year exceeds Rs 5 lakh. The proposal will come into effect from April 1, 2023.
