GST cut likely to defer insurance buying till new rates kick in

Experts expect spike in health and life insurance sales post-September 22, 2025, after GST exemption on individual policies takes effect, but many customers are likely to defer purchases until then

Following the announcement of GST exemption on individual life and health insurance policies, experts are anticipating a spike in sales post September 22, as new buyers are expected to defer purchases till the revised rates take effect.

 

“We will see health insurance becoming more affordable and it will result in a decent increase. We do expect a spike in health insurance sales, however, it will be post September 22 when the new GST rates will be applicable. Consumers are likely to postpone purchase of insurance and it might be a lull period till then,” an insurance official said.

 

The GST