GST May Be Removed from Health and Term Life Insurance Premiums: Know the Impact on Your Costs

The government is considering removing GST on health and term life insurance premiums. If approved, this move could significantly reduce your insurance costs. Here's how much you might save.

At present, 18% GST is levied on term life insurance and health insurance. An application has been made regarding this. Under the application, it has been demanded that all policyholders should get exemption on GST of term life insurance premium. Along with this, senior citizens should be exempted from GST on health insurance premium.

GST (Good and Service Tax) is applicable on all products and services used in the country. Insurance has been registered under financial service in our country. Therefore, GST is also levied on its premium.

Premium is the amount that you keep paying at a fixed time to avail the benefits of insurance. Along with this premium amount, you have to pay 18% GST to the government. There is a demand for exemption regarding this GST.