Now is the right time to buy insurance? How 0% GST has made your premiums cheaper and seen a boom in purchases..

Following the government's historic decision to reduce GST on health and term insurance to 0%, the online insurance platform Policybazaar has recorded its highest traffic ever.

Compared to a baseline until September 2025, the platform has seen a manifold increase in demand for health and term insurance. This growth is even greater than the surge seen during the COVID-19 pandemic.

After the implementation of the GST-free rule, demand for term insurance has increased by 2.5 times, while demand for health insurance has increased by 2.2 times.

Interestingly, this trend was not limited to the initial phase; this growth has continued even after the policy change. Currently, demand for health insurance remains at 1.7 times, and for term insurance at 1.8 times.

Insurance coverage in India remains lower than the global average. This government move not only brings relief to the industry but also provides millions of families with an opportunity to take a concrete step towards financial security.

Speaking on this, Sarbvir Singh, Joint Group CEO of PB Fintech, said, “This is a major victory not just for the industry but for the country. This move has transformed latent demand into actual purchases. In a country like India, where a sudden expense can wipe out years of savings, this decision will strengthen families financially. We are grateful to the government and Prime Minister Modi for clearly communicating that health and life insurance are no longer luxuries, but necessities.”

Policybazaar has always focused on the social and financial security of India's middle class. According to the company, approximately 85% of its marketing spend is focused on raising awareness, especially explaining the benefits of term and health insurance.

Company data shows that insurance buyers fall into three categories:

1. Active Buyers

2. Procrastinators

3. Undecided Customers.

All three categories have seen significant movement since the 0% GST. Active planners are now seeing the right time to expand coverage. Lower costs have encouraged procrastinators to buy, and even the unsure have taken the plunge.

The festive season has also fueled this surge. Navratri, considered an auspicious time for new beginnings and investments, has encouraged people to invest in their family's safety. This year, with the GST exemption, this trend is looking stronger than ever.

1. Active Buyers

2. Procrastinators

3. And Undecided Customers

All three segments have seen significant movement since the 0% GST. Active planners are now seeing the right time to expand coverage. Lower costs have encouraged procrastinators to buy, and even the unsure have taken the plunge.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.