Exemption of GST on Individual Life & Health Insurance: Impact on New vs. Existing Policies
New Delhi [India], October 8: The Central Government’s announcement exempting GST on insurance premiums from September 22, 2025, has sparked widespread interest. For many, this reform is expected to make both individual life and health insurance more affordable by lowering premium costs. But how this change plays out — especially for new policy buyers versus existing policyholders — depends on a few key factors.
Let’s explore how this development could impact different policyholders, what you should expect, and why the savings may vary.
How the GST Reform Changes Premium Dynamics
Up to September 21, 2025, insurance premiums attracted 18% GST, which was added directly to what policyholders pay. From September 22, 2025, GST has been exempted on individual life and health insurance, making pr...










