More than half of term insurance buyers now choose ₹1 crore+ cover: What has changed after GST relief
GST Council is in focus in a taxation development.
23 Sept 2026 · Business Today Mkts
The GST exemption on individual term insurance has coincided with a sharp rise in demand for higher life cover, with ₹1 crore-plus policies now accounting for more than half of purchases. The report shows buyers are not only purchasing more term plans but are also reassessing the level of financial protection they need.
The analysis
GST Council reported ₹1 crore. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
This is a Tax / tariff / duty event. Duty and incentive changes reset landed cost and competitive position immediately, and unlike demand shifts they arrive on a known date.
Why it matters
- Tax changes flow through to post-tax earnings and can shift the relative appeal of entire asset classes.
- With GST Council involved, this carries a regulatory dimension that can outlast the immediate market reaction.
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