Life Insurance Demand Affected by New Tax Regime Changes, Says Deepak Parekh

Mumbai, May 5 (BNP): Renowned industry veteran Deepak Parekh has highlighted that recent changes under the new tax regime, particularly the reduction of tax benefits, are beginning to impact consumer interest in life insurance products.

According to Parekh, the earlier tax incentives played a significant role in encouraging individuals to invest in life insurance policies. With these benefits now scaled down or removed under the revised structure, the sector is witnessing a noticeable shift in buying behaviour.

He noted that while life insurance continues to remain an essential financial protection tool, the demand dynamics are evolving as policyholders reassess long-term savings and tax efficiency.

Parekh further emphasized the need for greater awareness and financial education to ensure that individuals continue to prioritize insurance coverage despite changes in tax policy.

The life insurance industry, he added, may need to adapt its product offerings and communication strategies to align with the evolving regulatory and tax environment.