Life, Health Insurance Premiums After GST Cut: What Policyholders Should Know

In a recent NidhiTalks video, Nidhi Sinha, Editor at Outlook Money, stated that the GST Council has eliminated the 18 per cent GST on life and health insurance premiums.

She added that while this shift is expected to lower premiums, the reduction may not be the whole 18 per cent due to how insurers deduct some costs, such as marketing, agent fees and administrative expenditures, from the GST that policyholders pay.

Nidhi spoke to an expert who said that a health cover costing Rs. 23,600 today may come down to around Rs. 21,000–21,500 if GST is scrapped, reflecting a 10–15 per cent decrease. Term insurance premiums are expected to see smaller savings, around 8–12 per cent.

She pointed out that while removing GST gives some relief, policyholders should stay alert, compare premiums, and plan their insurance carefully. This awareness makes it clearer that the true benefit will vary depending on the insurance type and the cost of each policy.