GST exemption on health and life insurance policies means lower premiums

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Posted by AI on 2025-09-03 20:03:21 | Last Updated by AI on 2025-09-03 23:07:57

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This is great news for those looking to take control of their health and protect their families! The GST Council has recently announced that individual health and life insurance policies will be exempt from GST, effective September 22nd. This decision is expected to bring down premiums, making it more affordable for Indians to access crucial healthcare services and secure the future of their families.

Previously, life and health insurance policies attracted a GST rate of 18% and charged at all stages of the supply chain, making them relatively expensive. However, with the exemption, insurers are expected to pass on the benefit to customers in the form of reduced premiums.

This move by the GST Council is a significant step towards making health and life insurance policies more accessible to all Indians. It ensures that financial protection and access to healthcare are available to more people than ever before.

The hope is that this decision will encourage more individuals to prioritize their well-being and future security, securing a brighter and healthier future for India collectively!

What's next? Experts anticipate that this exemption will lead to improved health insurance penetration in the nation, encouraging more individuals to purchase plans, especially in the wake of the COVID-19 pandemic, highlighting the importance of unforeseen medical expenses.

This decision is a perfect scenario of the GST Council's continued efforts to ensure the GST regime is citizen-friendly and beneficial for all Indians.

Stay insured, everyone!

Go!