New Delhi, Sept. 5 -- The Centre has removed GST on all individual life insurance policies, whether term life, ULIP or endowment policies and subsequent reinsurance; and on family floater policies and policies for senior citizens and reinsurance thereof, from September 22, 2025, onwards.

The move, announced by Finance Minister Nirmala Sitharaman, is aimed at reducing entry barrier price for life insurance in India, which is currently an underserved market.

We examine when would be the best time for first-time policy buyers and renewals by policyholders, how much pass-through you could get, and whether there are chances of a rate hike in the future.

Most industry leaders and observers say yes. Removing the previous 18 per cent GST on in...