For policy buyers, the GST exemption on life and health insurance premiums is a landmark reform that will make protection more affordable and accessible. While the reforms officially take effect from 22nd September, you don’t have to wait for 10 days to buy the policy.

That's right! If you want to buy a health policy, you can even buy it today and get zero per cent GST applicable on the policy premium you have to pay.

"The government’s landmark decision to reduce GST on health and term insurance premiums from 18% to 0% is a truly progressive reform that will make these essential products more affordable. While the new GST regime officially goes live on 22nd September, the insurance industry has come together and worked to make 0% GST for customers feasible immediately," said Sarbvir Singh, Joint Group CEO, PB Fintech.

Singh said that health and term insurance are necessities, and there is no reason for families to delay purchasing them. "Since underwriting and policy issuance often take time, customers can now buy their policy today without paying GST, with coverage beginning from 22nd September. This ensures that they decide to protect themselves right away while fully benefiting from the government’s reform," added Singh.

Additionally, Anand Roy, MD and CEO, Star Health and Allied Insurance Co., said, "Starting now, customers can buy their health insurance policies without paying GST, with their coverage beginning from 22 September. We strongly feel that health insurance is a necessity, not an optional expense. By enabling customers to lock in their protection now—well ahead of the reform date—we are removing any friction in the buying process and ensuring families remain covered without delay."

What you must know

You don’t have to wait until 22 September to benefit from the government’s decision to reduce GST on health and term insurance premiums from 18% to 0%.

Insurers have already begun passing on the benefit, meaning if you purchase your policy today, you will not have to pay any GST on the premium. However, while you can complete the purchase now and secure your protection immediately, the policy's issuance date and coverage will only take effect from 22 September, when the reform officially comes into force.

This enables customers to secure their insurance without delay and still enjoy the full zero-GST benefit announced by the government.

Jeelani Basha SA, President and Chief Distribution Officer - Tata AIA, said, "The recently announced GST reforms mark a path-breaking step for the life insurance sector. By removing GST on individual life insurance policies, these reforms underscore the importance of life insurance as an essential consumer need. This move makes life insurance more affordable to a wider segment of the Indian population, and one can buy a policy now without paying GST."