Written by : Knowledge Centre Team
2026-01-22
1051 Views
6 minutes read
Share
Until recently, Goods and Services Tax (GST) applied to almost every sector and service, including Life Insurance, unless otherwise exempted by the GST Law. For years, policyholders paid 18% GST on their life insurance premiums, which marginally reduced the net returns on investment-linked plans.
However, in a major relief to customers, the 56th GST Council meeting on September 3, 2025, announced the removal of GST on individual life and health insurance premiums, effective September 22, 2025. This means policyholders now pay only the base premium, with zero GST.
What Does This Change Mean for You?
Lower Premium Outgo: The amount you pay is now exactly the base premium, without the earlier 18% GST.
Better Returns: For investment-linked insurance products, the absence of GST improves overall returns, since every rupee goes directly into your policy benefits.
Simpler Payments: You no longer need to account for tax adjustments on premium payments.
Save Taxes While Building Long-Term Wealth
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy No.
Address of the Policyholder as per records
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
Impact on Popular Insurance Plans
Let us look at the impact of the new reform on different insurance plans:
Term Insurance Plans
Term plans are pure protection products. Earlier, the entire premium was taxed at 18% GST. For example, if your annual premium was ₹10,000, you paid ₹11,800 including GST.
Now, you pay only ₹10,000, saving you ₹1,800 every year.
Investment-Oriented Plans (ULIPs, Endowment)
Earlier, GST was charged only on the protection part of investment plans, so the tax was lower than term insurance. However, now, with zero GST, your entire premium goes into savings and investments without any tax cut.
Health Insurance Riders
Health riders attached to life insurance policies also benefit from this change, as premiums for these are no longer taxed.
The GST exemption makes insurance more affordable and investment-linked policies more rewarding. Whether you’re securing your family’s future with a term plan or building wealth through ULIPs or endowment policies, you now pay only the actual premium, no extra tax.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
Recent Blogs
Do You Pay Income Tax on a ₹5 Lakh Salary? FY 2026 - 27 Tax Guide
18 June '26
1675 Views
6 minute read
Wondering if you need to pay income tax on a ₹5 lakh salary? Check your tax liability under the new and old tax regimes, understand rebate eligibility, and calculate your tax for FY 2026–27.
Read More
Tax Saving
How Much Tax Will You Pay on a ₹20 Lakh Salary? FY 2026 - 27 Tax Guide
18 June '26
1626 Views
6 minute read
Wondering how much tax you'll pay on a ₹20 lakh salary? Compare the new and old tax regimes, calculate your tax liability, explore deductions, and discover smart ways to save tax in FY 2026–27.
Read More
Tax Saving
How Much Tax Will You Pay on a ₹50 Lakh Salary? FY 2026–27 Tax Guide
18 June '26
1029 Views
7 minute read
Wondering how much tax you'll pay on a ₹50 lakh salary? Compare the new and old tax regimes, calculate your tax liability, understand surcharge rules, and discover smart ways to reduce your tax in FY 2026–27.
Read More
Tax Saving
How Much Tax Will You Pay on a ₹35 Lakh Salary? | FY 2026–27 Tax Guide
18 June '26
1519 Views
7 minute read
Wondering how much tax you'll pay on a ₹35 lakh salary? Compare the new and old tax regimes, estimate your tax liability, explore tax-saving options, and calculate your tax for FY 2026–27.
Read More
Tax Saving
How Much Tax Will You Pay on a ₹25 Lakh Salary? FY 2026–27 Guide
18 June '26
1327 Views
7 minute read
Wondering how much tax you'll pay on a ₹25 lakh salary? Get the latest FY 2026–27 tax calculation, compare the new and old tax regimes, estimate your tax liability, and explore smart ways to save more tax.
Read More
Tax Saving
How Much Tax Will You Pay on a ₹15 Lakh Salary? FY 2026 - 27 Tax Guide
18 June '26
1730 Views
6 minute read
Wondering how much tax you'll pay on a ₹15 lakh salary? Compare the new and old tax regimes, calculate your tax liability, explore deductions, and discover smart ways to save tax in FY 2026–27.
Read More
Tax Saving
How to Calculate Income Tax in India (FY 2026–27) | Tax Calculation Guide
18 June '26
1189 Views
8 minute read
Learn how to calculate income tax in India for FY 2026 - 27 using the latest tax slabs under the old and new tax regimes. Explore step-by-step calculations, examples, deductions and tax-saving tips.
Read More
Tax Saving
How Much Income Tax Will You Pay? FY 2026–27 Tax Guide
18 June '26
8544 Views
15 minute read
Find out how much income tax you need to pay for FY 2026–27 using the latest tax slabs under the old and new tax regimes. Explore salary-wise tax calculations, examples and tax-saving tips.
Read More
Tax Saving
Income Tax Slab FY 2026-27: New vs Old Regime Tax Rates
04 June '26
12202 Views
15 minute read
Check latest income tax slabs, rebate, surcharge & deductions under old and new tax regimes for FY 2026-27.
Read More
Tax Saving
Tax Savings - Top Selling Plans
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
Family Shield: Enhanced Protection
iSelect Smart360 Term Plan
- 3 Plan options
- Life cover till 99 years
- Steady income benefit
- Block your premium at inception
Fixed Returns, Zero Risks & Worries
iSelect Guaranteed Future Plus
- 4 Plan options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Start Young, Pay Less, Stay Secured
Young Term Plan
- Life cover till 99 years
- Coverage for spouse
- Block your premium rate
- Covers 40 critical illness
Popular Searches
- Tax Planning
- Income Tax Calculator
- TDS Vs TCS
- Section 80C
- What Is ITR
- Tax Concepts
- Section 80D
- Section 24
- 80DDB
- What is MAT?
- ITR-3 Form
- Term Insurance Tax Benefit
- TDS for Professional Fees
- Income Tax Slab FY 2025-26
- HRA Calculator
- TDS on Rent
- What is Income Tax Return?
- Income Tax for NRI
- How to File Income Tax?
- Section 80C Tax Benefits
- Old vs New Tax Regime
- LTCG Tax on Investments
- Tax Saving Options for Salaried
- Income Tax Rebate under 87A