India, Sept. 5 -- With the aim of making insurance more affordable and broadening coverage, individual life and health insurance policies have been exempted from GST, a change to take effect on September 22.

The exemptions apply to all individual insurance policies, including term life, ULIP or endowment policies and reinsurance. Since 2017, 18% GST has been levied on life insurance.

The shift is a part of the broader two-rate GST structure with 5% and 18% GST, with a reduction of GST on several items. This decision was taken by the GST council, headed by Union Finance Minister Nirmala Sitaraman.

The exemption is set to benefit anyone looking to buy a health policy on or after September 22. An individual looking to buy a policy after t...