ICICI Prudential Life Insurance, a leading Indian insurance provider, has introduced a new initiative to pass on the full benefit of the recent GST exemption to its customers, aiming to make term insurance plans more affordable.
The launch comes in response to the Indian Government’s recent reforms exempting all insurance policies from GST, which previously added 18% to the premium cost, according to FF News.
The GST exemption allows customers to pay only the base premium, lowering the cost of life insurance and making financial protection more accessible.
ICICI Prudential Life Insurance provides a range of life insurance solutions including term insurance, savings plans, retirement products, and investment-linked insurance, focusing on securing the financial future of individuals and families while enhancing financial literacy and inclusion.
The newly adjusted term insurance plans now reflect the full GST exemption benefit. For instance, a 30-year-old male, non-smoker, seeking Rs. 1 crore coverage for 30 years, previously paid a monthly premium of Rs. 825 including GST; he will now pay just Rs. 699. Similarly, a 30-year-old female, non-smoker, for the same coverage and tenure, will pay Rs. 594 instead of Rs. 697.
This product update ensures that insurance plans are financially accessible to a broader population, reducing barriers to entry and encouraging more individuals to adopt term insurance as a core component of their financial planning. The initiative supports the company’s mission to enhance insurance penetration in India and address the protection gap among the population.
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.”
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