Life insurers want bigger tax breaks in Budget 2026
Life insurance companies are urging the government to boost tax benefits in this year's Union Budget.
They're asking for separate deductions for term plans (not just under Section 80C), higher health insurance limits (up to ₹50,000 for individuals and ₹1 lakh for seniors), a review of the ₹2.5 lakh annual premium threshold for ULIPs and simpler and more predictable rules for taxing maturity proceeds.
Why should you care?
Even though life insurance became cheaper recently thanks to the exemption of insurance premiums from GST, most people—especially in rural India—still don't have enough coverage.
The industry says better, inflation-adjusted tax incentives could help more young people start saving early and protect themselves financially.
These changes also support IRDAI's long-term goal of expanding coverage, aiming to make financial security accessible across the country.