New Delhi, Aug. 26 -- For most young families, term life insurance is one of the most essential yet overlooked financial tools. It offers high coverage at low premiums and serves as a critical financial safety net. However, the affordability of even this basic protection is currently affected by an 18% Goods and Services Tax (GST) levied on all term insurance premiums. That may soon change.

A proposal to remove GST on all term life insurance policies, regardless of age, income or sum assured, has been recommended by a Group of Ministers (GoM) and awaits final approval from the GST Council. If accepted, this move could bring down the cost of protection for millions of young Indian families.

Term insurance premiums are subject to 18% tax ...