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The Finance Base
GST

Did Women Buy More Term Insurance After India’s GST Cut? What the Data Shows

Women’s term insurance purchases reportedly grew 27% faster than men’s after India exempted individual life policies from GST. The figure is a growth comparison, not a count of total policies or proof of causation.

By TheFinanceBase Team 3 min read
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Women’s term insurance purchases grew 27% faster than men’s in the post-GST period, according to a Policybazaar report cited by Business Standard. That is a comparison of growth rates—not evidence that women bought more policies in total or now hold more policies than men. The GST exemption on individual life insurance took effect on 22 September 2025, but the reported trend does not prove the tax change caused the difference.

What the reported gender comparison does—and does not—show

Business Standard reported in September 2026 that a Policybazaar report found women’s term insurance purchases grew 27% faster than men’s in the post-GST period. The report does not provide the underlying dataset, detailed methodology or absolute policy counts, so the figure should be read as a reported relative growth comparison from that platform—not as a national count or proof that women bought more policies overall.

The same report said term insurance purchases overall grew about 1.5 times after the exemption. It also reported that homemaker-segment growth was 60% higher than growth in other customer segments. These are figures attributed to Policybazaar through Business Standard’s 16 September 2026 report; they do not establish that the GST change alone caused the increases.

Which insurance policies became GST-exempt, and when?

GST on individual life insurance policies was exempted from 22 September 2025. The Department of Financial Services says the exemption also covers individual health insurance, including family floaters, and reinsurance. Group insurance policies, including employer-sponsored group life cover, remain subject to 18% GST, according to the department’s FAQ, last updated 5 January 2026.

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The Ministry of Finance stated the effective date and scope in a Rajya Sabha answer on 3 February 2026: “The exemption was given to individual life and health insurance policies (including family floater) along with reinsurance thereof w.e.f. 22.09.2025 vide notification No. 16/2025-CTR dated 17.09.2025.”

How payment timing affects the exemption

The department’s FAQ says instalments paid before 22 September 2025 attract 18% GST, while instalments paid on or after that date are exempt. Advance payments and invoices around the changeover can depend on the CGST Act’s time-of-supply rules. If a particular payment appears to have been taxed incorrectly, check with the insurer or consult the official FAQ for the circumstances that apply.

How much did premiums fall?

The exemption removed the 18% GST charge on qualifying individual policies; it does not mean every buyer’s total bill fell by 18%. GST was a tax applied to the premium, and a policy’s quoted price also depends on its terms and insurer pricing. The cited coverage does not give a typical rupee saving for a particular policy, so an exact reduction requires comparing the insurer’s quote and payment details for that policy.

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In a 3 February 2026 parliamentary answer, the Finance Ministry said IRDAI collected premium rates prevailing on 3 September 2025 and monitored rates for new policies and renewals. The Ministry reported that insurers confirmed they had not increased premiums and had passed on the GST relief in full, citing an IRDAI letter dated 7 January 2026. This is the government’s account of insurer confirmations, not an independently described audit.

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What else changed in the reported buying patterns?

The Policybazaar report, as relayed by Business Standard, also described changes in cover levels and add-ons:

  • More than half of term insurance purchases were for sums assured of ₹1 crore or more; 15% were for ₹2 crore or more.
  • Rider adoption reportedly rose 13% between the pre- and post-GST periods.
  • Accidental-death and waiver-of-premium riders were among the leading additions, according to the report.

These figures describe purchases reported by the platform, not a finding that a larger sum assured or more riders is right for every household.

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How to assess a term policy beyond the GST line

Choose cover based on the financial gap your dependants would face, rather than the headline purchase trend. Consider:

  • Cover amount: Relate the sum assured to dependants’ needs, income replacement, outstanding liabilities and other resources.
  • Policy and payment terms: Check the policy duration, premium amount and how long premiums must be paid.
  • Conditions and exclusions: Read the policy wording and understand claim conditions and exclusions before buying.
  • Riders: Compare each rider’s additional cost, coverage and exclusions with the risk it is intended to address. A higher rider count is not automatically better cover.
  • Insurer information: Review available service and claims disclosures alongside the policy terms.

The purchase-growth figures are not market-wide statistics: the cited report does not supply absolute counts or enough methodology to generalize its platform’s customer behaviour to all Indian insurers. Treat the gender comparison as a reported trend, and treat the GST exemption as a separate change to the tax on qualifying individual policies.

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