HDFC Life's retail protection premiums surge 43% in FY26 as overall premium grows 12%

Three factors are driving the shift: the government's recent move to remove GST on certain retail life insurance products, which lowered term plan costs for middle-class buyers; growing financial literacy among younger investors who are separating insurance from investment products; and a lasting post-pandemic shift in how families assess mortality risk.

Historically, pure term insurance was a hard sell in India. Consumers preferred endowment plans that promised a guaranteed return even if they didn't need the insurance payout. The 43% jump suggests that preference is weakening.