MUMBAI | 18th JUNE 2026 | The life insurance industry is highlighting the need for a more balanced understanding of life insurance, emphasizing that its long-term benefitsincluding financial protection, security, and disciplined savings, far outweigh isolated concerns that may arise, including instances of mis-selling.
The Insurance Awareness Committee – Life Insurance (IAC-Life) encourages customers and stakeholders to view life insurance as a long-term financial protection instrument, rather than assess it solely through immediate or short-term outcomes.
“Life insurance is designed to deliver value over time—through financial security, protection for families, and disciplined savings. While concerns such as mis-selling do exist and must be addressed by the industry, they represent a small part of the overall ecosystem, which continues to deliver significant value to millions of policyholders,” said Kamlesh Rao, Chairperson, Insurance Awareness Committee (IAC-Life).
Importantly, life insurance is the only financial instrument that offers a ‘free-look period’, which allows policyholders to review their policy after purchase and return it within a stipulated timeframe if they feel it does not meet their needs. This feature provides an added layer of transparency and customer protection at the point of purchase.
Life insurance products are structured to encourage long-term holding, and outcomes are closely linked to this lifecycle. When policies are evaluated prematurely, the full extent of these benefits may not be immediately apparent. “Assessing long-term financial solutions through a short-term lens may lead to incomplete conclusions about their overall value,” Mr. Rao added.
The core purpose of life insurance remains financial protection during critical life events. In FY 2024–25 alone, the industry paid out over ₹6.3 lakh crore in claims, including death benefits, maturities, annuities, and withdrawals—providing crucial financial support to millions of families.
While market-linked instruments play an important role in wealth creation, life insurance serves a distinct purpose—offering income protection, financial continuity, and long-term financial discipline. These complementary roles are essential for holistic financial planning.
The Insurance Awareness Committee urges stakeholders—including insurers, intermediaries, and consumers—to align expectations with the long-term nature of life insurance and recognise the broader value it delivers over time.
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