LIC CEO and MD R Doraiswamy says economic growth, rising incomes and longer lifespans can expand demand for protection, savings and retirement products. For buyers, the longevity trend also raises a question about balancing life cover with retirement income planning.
Doraiswamy expects India’s low insurance penetration, rising incomes, greater financial awareness and longer life expectancy to support strong demand for protection, savings and retirement products in the coming years.
Speaking as LIC marked its 70th foundation day, Doraiswamy said the insurer must adapt its products and distribution to a more competitive digital market. “Meeting that demand, while adapting its distribution and product mix to a more competitive and digital market, will define LIC’s next chapter,” he said.
Technology has raised customer expectations around speed and simplicity. LIC is therefore focusing on its product portfolio, technology, persistency and distribution mix.
At the same time, LIC is balancing its historic social mandate with the demands of being a listed company. Doraiswamy said the insurer must continue reaching rural and underserved customers while meeting public shareholders’ expectations for returns.
LIC reported total premium income of Rs 5,35,984 crore in FY26, up 9.8% from a year earlier. Profit after tax rose 19.25% to Rs 57,419 crore, according to LIC’s official FY26 performance update.
What does longevity risk mean for insurance buyers?
Longer lifespans can increase the number of years for which retirement savings must provide income. Longevity risk refers to the possibility that a person outlives the savings or income set aside for retirement.
Term insurance addresses a different risk. IRDAI says a term insurance product pays a fixed amount on death during the contract period. It therefore protects dependants against the financial impact of death during the policy term.
An annuity, by contrast, provides periodic income while the annuitant remains alive. IRDAI’s Saral Pension framework includes lifetime annuity options with return-of-purchase-price provisions.
World Bank data puts India’s life expectancy at birth at 72 years in 2024. However, buyers should not use a national average as a retirement target. Retirement age, family longevity, savings, health costs and other income sources affect how long a retirement corpus may need to last.
Also read: Term Insurance Explained
Should you choose term insurance or retirement cover?
Term insurance and retirement products solve different problems, and some buyers may need both. If family members depend on your income, term insurance can protect them if you die during the policy term.
Meanwhile, retirement products address the risk of income running short after regular earnings stop. Before buying an annuity, check the payout, payment frequency, joint-life option, liquidity and return-of-purchase-price conditions.
For term cover, review the sum assured, policy term, premium and exclusions. Most importantly, assess family protection and retirement-income needs separately.
Need help deciding how life cover fits alongside retirement planning? MyRupia offers independent insurance guidance without selling policies or earning insurer commissions. Explore MyRupia’s Life Insurance guidance before choosing a policy.
Disclaimer: This MyRupia article is for informational purposes only and is based on publicly available government, regulatory and industry sources. It should not be treated as investment, financial, tax, insurance or legal advice. Information, examples, market data and expert views mentioned in the article may change over time and should not be considered a recommendation to buy, sell, invest in or surrender any financial product. Readers should evaluate their individual circumstances and consult a qualified financial professional before making decisions.