INCOME TAX4 Oct 2026
What life insurers actually pay for | Mint
India's insurance regulator Irdai has released a consultation paper showing that in fiscal year 2025, life insurers paid out ₹6.3 trillion in benefits, while death claims were just ₹0.47 trillion. Surrender payouts alone were five times bigger. Fewer than half of policies stay active after five years. If you hold a policy, check it actually protects your family.
Key Statutory Highlights
- In FY25, life insurers paid ₹6.3 trillion in benefits, but death claims were only ₹0.47 trillion, which is 7% of the total.
- Surrender payouts took 37% of benefits paid, maturity benefits took 35%, and annuity and pension payments took the remaining 20%.
- Industry-wide 61st-month persistency is 48%, but online policies bought without an agent stay in force at 71%.
Actionable Advice for Taxpayers / Founders:Review the policies you already hold and check how much your family would actually get as death cover. If protection is your main goal, ask a qualified adviser about a pure term plan before making any changes, since surrender terms and charges differ by policy.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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