A full GST exemption on life insurance premiums could mean more expensive premiums for policyholders. Here’s why?

Lately, there have been multiple demands to exempt term life insurance premiums from the ambit of GST (Goods and Services Tax). A high GST rate of 18% on life insurance premiums makes the plan too costly for many to afford. So, either they end up taking no insurance or take a much lower life cover than what they could have done in the absence of GST. Many believe that if life insurance premiums ar…