ICICI Prudential Life Insurance has fully passed on the GST exemption benefit to its customers, effectively reducing the cost of life insurance products including term plans. This move comes after the Government of India announced reforms exempting all insurance policies from 18% GST, lowering premiums and making financial protection more accessible. Earlier, customers paid Rs. 118 for every Rs. 100 premium due to GST, but now they pay only the base premium amount. With this change, a 30-year-old male non-smoker will now pay Rs. 699 per month instead of Rs. 825 for a Rs. 1 crore term cover for 30 years. Similarly, a 30-year-old female non-smoker will pay Rs. 594 per month instead of Rs. 697 for the same cover and tenure.
Mr. Vikas Gupta, Chief Product Officer, ICICI Prudential Life Insurance Co. Ltd., said, “At ICICI Prudential Life Insurance, we believe that true value lies in doing what’s right for our customers. Every saving we return to our customers strengthens trust, enhances affordability and moves us closer to a future where quality insurance is within everyone’s reach. It also complements the Company’s ongoing efforts to reduce the protection gap by encouraging more individuals to take the first step towards securing their future.”
Financial advisors and customers welcomed the reduced premium structure, noting that affordability remains a critical factor driving insurance decisions in the region. With rising awareness around financial security, market experts said the GST exemption could significantly boost insurance penetration among middle-income families, further supporting long-term financial planning habits. The reduced premiums are expected to increase insurance penetration and encourage more individuals to secure financial protection for their families.
