GST cut on health insurance: Policyholders may use free-look period option

It allows customers to review and cancel the insurance policy within 30 days of its purchase

With the goods and services tax (GST) on individual health and life insurance premiums now fully exempted, insurance experts believe that policyholders are likely to exercise their ‘free look period’ option to postpone purchase of insurance policies to get the advantage of nil GST on premiums.

 

‘Free look period’ in insurance policies allows policyholders to review and cancel the policy within 30 days of its purchase.

 

The new GST rates will be applicable from September 22.

 

“There is a possibility that policyholders are likely to exercise the free look period and come back and buy policies after September 22. People