ICICI Prudential Life Insurance has announced that it will pass on the full benefit of the GST exemption to its customers. As a result, premium rates for all insurance plans, including term insurance, have now been reduced.
ICICI Prudential Life Insurance has announced a significant relief for its customers. The company recently announced that it will transfer the full benefit of the government’s GST exemption on insurance policies to its customers, i.e., policyholders. The government recently exempted all individual insurance policies from GST, eliminating the need for customers to pay the 18% tax. This will directly impact all insurance premiums, including term insurance, which will now have lower rates.
Save the full GST amount.
Previously, when an individual paid a premium of ₹100, a Goods and Services Tax (GST) of ₹18 was added, resulting in a total payment of ₹118. Now, with the removal of GST, customers will only have to pay ₹100. ICICI Prudential Life has decided to immediately extend this relief to all its policyholders, making insurance purchases even easier and more affordable.
How much will the premium be reduced on a term insurance policy of ₹1 crore?
According to ICICI Prudential Life Insurance Company, a 30-year-old non-smoker man will now have to pay only ₹699 per month for a 30-year term life cover of ₹1 crore, compared to ₹825 including GST previously. Similarly, a 30-year-old non-smoker woman will now have to pay only ₹594 per month, compared to ₹697 previously. This means a direct savings of over ₹100 per month.
Emphasis on reducing the protection gap in the country
Vikas Gupta, Chief Product Officer, ICICI Prudential Life Insurance, said, “We believe that true value lies in what benefits our customers. Every savings we pass on to our customers strengthens their trust and makes insurance more affordable. Our goal is to make quality insurance accessible to everyone and reduce the protection gap in the country.”
Cheaper insurance will increase security coverage.
Insurance experts believe that this move will not only benefit existing customers but will also encourage new ones to take out insurance. Now, with lower premiums, people will be able to easily purchase life insurance, thereby increasing the reach of insurance coverage in the country. This decision is considered an important step towards expanding the scope of financial security in India.
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