In today's lifestyle, a health insurance policy is a basic requirement. It protects our loved ones from exposure to any untoward mishap. The common reasons why we need health insurance are as follows
The early onset of lifestyle diseases was a rarity several years ago. Now diabetes, heart, and respiratory diseases have become common.
Safeguarding the health interests of parents and providing them with stress-free health benefits.
To deal with the inflationary costs of healthcare.
To protect our savings.
The GST (goods and services tax) rate on individual health insurance premiums may be reduced to 5% from 18%.
This proposal will be discussed at Jaisalmer's 55th GST Council meeting on December 21st, 2024. The medical dialogues team has been assigned the task of reviewing the GST rates applicable to medical insurance. The FM added they were in the process of deciding how to implement it—who would be the beneficiaries and how the benefit could be passed on.
Recently, the government has reformed the GST framework, which focuses on making health and life insurance more affordable and accessible.
Flat 5% GST rate for all individual health policies.
No input tax credit (ITC).
GST exemptions be granted to pure life-term policies especially those providing family coverage. and policies for senior citizens.
The health and life insurance premiums in India are taxed at 18%, making them expensive for most households. Implementing a reduction could significantly lower the cost of premiums and encourage people to adopt health insurance.
Senior citizens who have to cough up higher insurance premiums due to age. The GST reduction could make insurance more affordable.
Cost reduction and exemption could address a long-standing concern in this sector.
Experts think this will be beneficial for insurers to opt for health insurance coverage and even upgrading the plan. Government may announce the policy soon.
(Input from various sources)
(Rehash/Dr. Swati Sharma/MSM)