Insurance policies where premium is above Rs 5L no more tax exempt

New Delhi, Feb 1 Insurance policies where the premium is over Rs 5 lakh will no longer be tax exempt, as per the provisions in the Union Budget 2023-24.

Kapil Mehta, Co-founder, SecureNow Insurance Broker said the income from traditional insurances where the premium is over Rs 5 lakh will not be tax exempt. While, this will dampen the interest of individuals to buy high value traditional insurances, it will increase the focus on term plans and pure risk covers which is good.

A concern is that it should not result in a significant shift towards purely investment oriented unit link insurances, Mehta said.

Arihant Bardia, CIO and Co Founder, Valtrust said if premium paid on insurance policies