Starting September 22, 2025, the Goods and Services Tax (GST) on individual life and health insurance premiums will drop from 18% to nil, offering a massive financial relief for policyholders.

Now is the best time to increase your health insurance coverage and buy a new term insurance plan, as GST is no longer applicable from September 22, 2025. This move saves you up to 18% on premiums, making insurance more affordable and accessible. With rising medical costs and unpredictable health risks, higher coverage ensures better financial protection for your family. Similarly, term insurance at a lower premium gives your loved ones greater security at a reduced cost. Take advantage of this GST-free benefit today and enhance your protection without any extra tax burden. Act now for a safer future.

For affordable Term plans and Health Insurance, call 9480240513

What You Stand to Save from No GST on Life & Health Insurance plans

For example, a ₹30,000 annual premium previously included ₹5,400 in GST, totaling ₹35,400. From September 22, you’ll pay just ₹30,000 — that’s a straight 18% saving. A big relief for the every policyholder. 

This applies to:

• Life insurance (term life, ULIP, endowment)

• Health insurance (individual, family floater, senior citizen plans) 

• Renewal of the above from 22nd September 2025

Is 18% Your Entire Benefit?

Not necessarily. While the GST component vanishes, insurers will lose the ability to claim Input Tax Credit (ITC) on expenses like admin, commissions, and rentals. This may lead them to slightly raise base premiums — meaning your real savings might be 10–18%, depending on how insurers respond 

However, many insurers—especially in competitive segments like term insurance—are expected to absorb most of the benefit to keep premiums attractive 

Should You Wait to Buy or Renew?

• New buyers will definitely benefit if they start a policy on or after September 22 — that’s when GST gets waived 

• Existing policyholders: Only renew on or after September 22 to avoid paying GST. However, do not delay past your renewal due date, as it may lead to lapses, loss of benefits (like no-claim bonuses), or coverage gaps

Some policyholders shared concerns on social forums — one commenter noted:

“the industry consensus is pay premium on or after 22nd Sep, GST will be NIL even if your policy was due before 22nd,” though “clarification is being sought.” Reddit

What You Should Do

1. Check your renewal dates.

   • If it’s due before Sept 22, renew now to maintain benefits.

   • If it’s on or after Sept 22, wait to enjoy GST-free premiums.

2. For new policy purchases, definitely start on or after Sept 22 — you’re looking at near 18% savings.

3. Monitor insurance provider announcements — many insurers have confirmed they will pass on the benefit or minimize premium hikes.

4. Re-evaluate your cover. Lower premiums mean you can potentially increase your sum assured or add riders without raising your total premium.

For the Term Insurance and Health Insurance policyholders

Save 18% on Term Insurance & Health Insurance Plans – Starting September 22!

From September 22, 2025, all individual term life and health insurance policies will no longer bear the 18% GST—meaning you pay only the base premium. That translates to up to 18% savings!

Act smart:

• Renew on or after Sept 22 to enjoy GST-free premiums (but don’t miss your due date!).

• New purchases after that date also enjoy full benefit.

Use your savings to increase your coverage, add riders, or suit yourself with better protection. Secure your future more affordably—tax-free!

No GST on Life & Health Insurance plans

A great savings for all Insurance policyholders.  This will help the policyholders to increase their Health Insurance cover or to buy a new term plan at a lower premium. For more information, call : 9480245013