Budget 2023: Life insurance cos tank up to 11% on demand worries

In the FY24 Budget, the government announced that income earned from all life insurance policies, excluding unit-linked insurance plans (ULIPs), with a premium of above Rs 5 lakh will be taxable.

This is applicable for new policies, issued post April 1, and not for the existing ones.

This effectively means taking away the tax-free advantage from traditional insurance plans if the annual premium is above Rs 5 lakh.

Shares of HDFC Life Insurance nosedived 12% to Rs 510.30, while SBI Life Insurance plunged 9% to Rs 1,119. The country’s largest life insurer Life Insurance Corporation of India (LIC) declined 5% to Rs 618.40. Max Financial plummeted 10% to Rs 752.10. PB Fintech dropped 7% to Rs 397.25.
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