Best health insurance plans after zero GST 2025 are now more affordable than ever. With the removal of 18% GST on premiums, Indians can save thousands each year while upgrading to higher coverage, better hospital networks, and advanced policy features.
Best Health Insurance Plans After Zero GST 2025
What Zero GST Means for Your Health Insurance Premiums
In September 2025, the GST Council approved 0% GST on individual health and life insurance premiums. www.ndtv.com
Here’s what changes for you:
-
Removal of the previous 18% tax levied on health/life insurance policies. www.ndtv.com
-
Premiums become more affordable, especially for higher sum insured plans and family floater or senior citizen policies.
-
Encourages more people to take adequate cover.
-
Insurers will no longer charge GST on the policy premium itself (though commission or broker charges still have complexities). The Times of India+1
So if you were hesitating because of cost, this is a good time to evaluate your health insurance upgrade.
Key Features to Look for in Top Health Insurance Plans (2025 Checklist)
Before we showcase top plans, here are must-have features:
-
High Claim Settlement Ratio (CSR)
-
Large network of cashless hospitals
-/no room-rent caps or minimal caps -
OPD cover, maternity, AYUSH treatments (if relevant)
-
Restoration or reinstatement of sum insured upon exhaustion
-
Low waiting period for pre-existing diseases (PED)
-
Wellness bonuses or no-claim bonus
-
Transparent exclusions and co-payment terms
Top 3 Health Insurance Plans to Consider After Zero GST in 2025
Below are three insurance plans that stand out based on 2025 features, user reviews, and how they benefit from the zero GST change.
| Plan Name | Sum Insured Range | Key Features | Ideal For | What Makes it Stand Out after Zero GST |
|---|---|---|---|---|
| HDFC ERGO Optima Secure | ₹5 lakh – ₹2 crore | No room rent capping; 100% restoration of sum insured; large hospital network; plus benefit (bonus sum for claim-free years) Mr. Reddy Tech+2Vyapar Grow+2 | Individuals, families needing strong cover & restoration benefits | With zero GST, premium drops significantly for higher SI options; restoration benefit becomes more cost-effective |
| Niva Bupa ReAssure 2.0 | ₹5 lakh – ₹1 crore (and above in select plans) | Unlimited reinstatement; OPD cover; digital wellness tools; competitive waiting periods; large CSR UptodateFinance+2UptodateFinance+2 | Young families, people expecting frequent claims or needing OPD & wellness features | Removing GST makes it affordable to buy more sum insured or add riders without very high premium burden |
| Aditya Birla Activ One NXT | ₹5 lakh – ₹2+ crore | Super-credit feature (increases sum insured over years), wellness bonuses, no room rent or ICU caps; inclusive coverage Mr. Reddy Tech+1 | Those looking for inflation-proof cover, high sum insured, or inclusive family cover | Zero GST now lets you invest more into features and cover rather than paying tax overhead |
How Much Will You Save with Zero GST? Illustration
Here’s an estimated saving example:
| Sum Insured | Old Premium (with 18% GST) | New Premium (0% GST) | Approx Savings |
|---|---|---|---|
| ₹5 lakh health floater plan | ₹10,000 + ₹1,800 GST = ₹11,800/year | ₹10,000/year | ₹1,800 saved/year |
| ₹1 crore family floater | ₹50,000 + ₹9,000 GST = ₹59,000/year | ₹50,000/year | ₹9,000 saved/year |
Savings become more meaningful for higher sum insured and family floater policies.
Steps to Choose the Right Health Insurance Post-GST & Maximize Benefit
-
Re-evaluate your cover needs
With premiums lower, you may afford higher sum insured or better benefits. -
Compare policies online
Use tools/websites that show the premium minus GST; many older quotes include the old GST. -
Check CSR & hospital network
A cheaper premium is good only if claims are settled swiftly in hospitals near you. -
Watch waiting periods & PED clauses
A policy might be cheaper, but waiting on pre-existing conditions or disease-wise sub-limits can cost you greatly. -
Add riders wisely
Riders like maternity, critical illness, OPD are useful; now with zero GST, cost of riders becomes more reasonable. -
Renew regularly and don’t skip
Lapses increase waiting periods, so maintain continuous cover.
Common Mistakes to Avoid After the Zero GST Change
-
Assuming “no GST = full price drop” (premium components like add-ons, commissions, or fees may still incur other charges).
-
Switching insurer hastily without checking claim track record.
-
Being tempted by very low premiums but with hidden caps (room rent, ICU, etc.).
-
Ignoring the fine print: PED waiting period, sub-limits, co-payments.
Why Zero GST is a Game Changer for Indian Households
-
More affordable health covers → more people will take cover.
-
Larger sum insured policies become accessible to middle class.
-
Encourages better health planning, preventive care (OPD, wellness).
-
Reduces financial shocks in emergencies.
Conclusion: Ideal Health Insurance Strategy Post-September 2025
Zero GST is a golden opportunity. Use it to upgrade your policy — increase sum insured, better features, better hospital network — without overpaying. Among the many policies, HDFC ERGO Optima Secure, Niva Bupa ReAssure 2.0, and Aditya Birla Activ One NXT offer excellent value. Choose based on your personal needs (family size, age, pre-existing diseases) and budget.
FAQs on Health Insurance After Zero GST
Q1. When exactly did GST become zero on health insurance premiums?
From September 22, 2025, all individual life and health insurance premiums attract 0% GST. www.ndtv.com
Q2. Does zero GST apply to all health insurance policies?
Yes — for individual health insurance policies, including family floaters and senior citizen plans. It does not apply to group or employer-provided policies (unless specified). www.ndtv.com
Q3. Will zero GST reduce premium for existing policies when renewed?
Yes. At renewal, the insurer should price the premium without the 18% GST component. So you’ll see saving in your renewed premium.
Q4. How much sum insured should I take now that premiums are cheaper?
Aim for sum insured that covers major hospitalisation costs in your city + inflation. For metro areas, ₹10-20 lakh may be basic; for families, ₹50 lakh+ in some cases. Use the new affordability to increase cover.
Q5. Are there any drawbacks of upgrading health insurance now?
Possible cons: premium increases due to age or inflation still apply; waiting periods for PED remain; claims process or TPA network matters. Also, extremely cheap plans may compromise on features.
About The Author
