The data compares term insurance purchase trends on Policybazaar before and after the GST exemption on individual term life insurance. Overall term insurance adoption on the platform increased about 1.5 times in the post-GST period, the company said.
The trend towards higher cover is particularly visible among affluent customers.
The share of high-net-worth individuals (HNIs) opting for term covers of ₹3 crore and above increased 32%, while the corresponding share among non-resident Indians (NRIs) rose 35% in the post-GST period, according to Policybazaar.
The increase in cover size has also been accompanied by greater use of additional protection. Rider adoption on the platform increased 13% after the GST exemption, with Accidental Death Benefit and Waiver of Premium among the riders driving the increase.
The change in buying patterns extends beyond higher-income customers. Women’s term insurance purchases grew 27% faster than men’s, while the homemaker segment recorded 60% additional growth compared with other customer segments, Policybazaar said.
Self-employed customers also recorded 12% faster growth in term insurance adoption than other segments. The segment may have less access to employer-provided life cover, making individual insurance an important part of financial protection.
Younger buyers also showed stronger uptake. Purchases among those aged 18–25 grew 20% faster than the other age groups, followed by the 36–45 age group.
The regional data showed the strongest growth in Andhra Pradesh and Telangana, where term insurance adoption increased 39% between FY25 and FY26. Kerala and Maharashtra followed with growth of 11% and 10%, respectively.
Varun Agarwal, Head of Term Insurance at Policybazaar, said the GST exemption had prompted customers to reassess their protection needs, including by opting for higher sums assured and adding riders.
The platform’s data therefore points to two trends after the GST exemption: broader adoption of term insurance as well as greater interest in higher levels of cover. However, the appropriate sum assured for an individual would depend on factors such as income, outstanding liabilities, dependants, existing assets and other life insurance coverage.
