37% of payouts to policyholders in life insurance happening due early exits; here’s what RBI data reveals

Life insurance payouts are increasing significantly in India. However, this rise is not due to policies maturing as expected. Instead, a large portion comes from policyholders cashing out early, often at a loss. This trend highlights a system that appears to benefit insurers and their agents more than policyholders. Regulatory data suggests a commission-driven model is at play.