The removal of Goods and Services Tax (GST) on term life and health insurance has prompted a rise in demand for comprehensive coverage, according to data from Policybazaar. The platform has recorded a 38% increase in high-sum insured health policies following the GST waiver, along with growing interest in add-ons such as Day-1 pre-existing disease and critical illness covers.

Policybazaar’s latest report shows that 45% of post-GST health insurance buyers are now opting for coverage between ₹15 lakh and ₹25 lakh, while 24% prefer ₹10–15 lakh, and only 18% continue with plans below ₹10 lakh.

The average health cover size has risen from ₹13 lakh to ₹18 lakh.

Tier-II Cities, millennials, and seniors drive uptake

Policybazaar’s data indicates that the shift toward higher coverage is not lim

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