According to the 56th GST Council meeting, changes in health insurance premiums have led to significant savings. These changes not only make health coverage more affordable but also offer an excellent opportunity to enhance your protection. With the savings after GST removal, you can upgrade your plan, add more features or invest in your overall health and wellness. Making smart choices with these savings helps you secure more comprehensive coverage and greater peace of mind in managing healthcare costs.
5 Ways to Use Your New Savings on Health Insurance
Invest in Preventive Healthcare
One of the smartest ways to use your health insurance premium savings is by investing in preventive healthcare. This includes regular health screenings, vaccinations and routine check-ups that can catch potential health issues early, reducing the risk of costly treatments later.
Additionally, spending on wellness activities like yoga, fitness routines, nutrition or stress management programs helps maintain your overall health. Preventive care not only improves your quality of life but can also lower future medical expenses, making it a wise and proactive use of your savings from reduced premiums.
Build a Health Emergency Fund or Wellness Fund
The next best and most important thing would be to start building an emergency fund. Even if your insurance covers most medical costs, there are always some extras like
health insurance deductibles, special tests or room upgrades that might come up.
Use the money you've saved on your premiums to slowly build this fund. Start small by setting aside an amount from your premium savings into a separate savings account or any other investment instrument of your choice. Over time, this fund can help cover extra costs during a health emergency or even let you upgrade your insurance with add-ons like
OPD cover or no room rent limits.
Invest in More Comprehensive Plans
With reduced
GST for health insurance, you may now afford a more comprehensive plan without stretching your budget. Upgrading from a basic policy to a broader one can give you better protection, including a higher sum insured, coverage for
daycare treatments and fewer sub-limits.
Instead of sticking to a basic plan, you can move to more robust options like Reliance
Health Gain, which gives you greater flexibility to customise your plan, including features like unlimited reinstatement and modern treatment coverage. More coverage means fewer worries when faced with serious medical conditions.
Consider Enhancing Coverage with Super-Top Plans
If your existing
health insurance feels limited, use your premium savings to buy a super top-up plan. These plans give you additional coverage at a much lower cost, especially useful when hospital bills go beyond your base policy's limit.
For example, if your current
sum insured is ₹5 lakh, a super top-up can extend that to ₹10 or ₹15 lakh without paying full premium rates. With the Reliance Super Top-Up Plan, you can enjoy higher protection without drastically increasing your spending, making your insurance more future-ready.
Opt for Add-Ons or Specialised Plans
Health emergencies often come with costs, such as diagnostics, room upgrades and maternity care, which are not always covered by basic plans. With your new premium savings, you can now opt for smart add-ons like Room Rent Waiver, OPD cover or
Maternity Cover, which help reduce out-of-pocket expenses significantly.
Another way to use your savings is by investing in our
Critical Illness Insurance plan. These policies pay a lump sum amount if you're diagnosed with illnesses like cancer, heart attack, or kidney failure. The payout can help manage recovery costs or replace lost income.
Conclusion
The recent GST impact on health insurance has made it more affordable, giving you a chance to make your savings work smarter. You can upgrade to a more comprehensive plan like Reliance Health Gain or the
Super Top-Up plan, or start a small emergency fund to strengthen your financial safety. With Reliance General Insurance, get access to a wide range of plans and add-ons and get more protection without stretching your budget.
FAQs
Is GST applicable to health insurance?
The individual and senior citizen health insurance policies are exempt from GST according to the new GST reform. This makes premiums more affordable for personal policyholders. Group insurance and business-related policies may still attract GST as per their structure.
When will the new GST reform apply to health insurance premiums?
The new GST reform for health insurance premiums took effect from September 22, 2025, as announced during the 56th GST Council Meeting. From this date onward, GST is no longer levied on premiums for individual health and life insurance policies, helping reduce the cost burden for personal policyholders.