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Why health insurance will soon become cheaper in India
From September 22, 2025, life and health insurance premiums in India won't have GST added.
While this sounds like good news for your wallet, insurers are expected to bump up premiums by 3-5% to make up for losing certain tax credits.
Analysts expect a significant drop in total cost of health insurance
Even with a small premium hike, analysts at Kotak Institutional Equities say the total cost of health insurance could drop by around 12-15%.
So, you might end up paying less overall—making it easier for more people to get covered.
Insurers will still pay GST on some business costs
Insurers still pay GST on some business costs but can't claim those taxes back under the new rules.
The slight increase in premiums helps them balance things out.
For most of us, though, this change could mean more affordable health insurance from September 22, 2025.