For years, term insurance premiums were taxed at 18% GST. Due to this, the premiums were costly, and a lot of people in India avoided term insurance plans due to the tax. However, after the GST 2.0 (w.e.f 22 September 2025, there will be 0% GST charged on term insurance. This makes term insurance premiums much more affordable than ever. However, how does this benefit you, and what should you do?

In this post, we’ll discuss everything you need to know about this change, why it matters, and how it will affect you.

What is Term Insurance?

Term insurance is one of the most basic forms of life insurance. You pay a fixed premium for a specific number of years, which is called the policy term. If something unfortunate happens to you within that period, your family receives a lump-sum payment

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