No GST, No Excuses: Maximum protection for your self-made journey

Table of Content

1. Why freelancers need protection

2. When cost becomes a barrier

3. Effect of 0% GST relief

4. Confidence to build

Freelancers and new entrepreneurs live in a world of uncertainty. They earn irregular income, they juggle personal goals, and they face constant financial trade-offs. Unlike salaried employees, there is no steady paycheque at month’s end. Every rupee is counted, saved, or reinvested. This frugal mindset often means they delay or avoid expenses that appear non-essential. Life insurance, unfortunately, sometimes falls into that category.

Why freelancers need protection

But pause for a moment. What happens if illness strikes or life takes an unexpected turn? Who will protect the family that depends on them? Freelancers and entrepreneurs build with courage. And their people need protection as well. A savings plan or life cover is not a luxury. It is the safety net that keeps dreams from collapsing. Without it, one setback could erase years of effort.

Life insurance is more than just a policy document. It gives peace of mind to the breadwinner and dignity to the dependents. A freelancer chasing clients, or an entrepreneur investing in a venture, works harder knowing that protection is in place. The monthly or yearly premium is not wasted money. It is an investment in stability, and it buys more than numbers: it buys calm.

When cost becomes a barrier

The challenge, of course, is affordability. For someone counting every penny, even small increases matter. That is why tax on insurance premiums has always been uncomfortable. An added percentage in the form of GST marks an upward edge to every bill.  Considering this, many tend to  postpone or reduce their cover because of this burden.

That equation has changed recently. The government has removed GST on individual life insurance policies and their premiums. From September 22, 2025, the rate for these will be zero. The full tax is gone, and premiums have dropped. Insurance companies may adjust a small part for their internal costs. Still, the final savings are significant.

Effect of 0% GST relief

Think about the numbers over time. Take a freelancer paying a premium of ₹50,000 a year for an individual life insurance policy. Earlier, with an added GST on individual life insurance policies, the yearly premium bill would have jumped . That additional cost would feel heavy, especially for someone balancing every expense. Now, with GST removed, the cost falls back to the base.

But think further. What if you invested the savings gained from nil GST on individual life insurance policies into another investment? Even a simple investment tool that yields 7 to 8 per cent annual returns can grow significantly. Over a decade, the corpus would grow considerably. Stretch the horizon to twenty years, and the number would climb. The same savings that once went to taxes could instead build wealth quietly.

Tax-free individual life insurance frees up meaningful sums. Month after month, year after year, those amounts add up. For freelancers or entrepreneurs, that money can keep a business alive, fund a child’s education, or cover essentials when income slows. Protection now comes without the penalty of tax, and the saving itself becomes a source of strength.

Cost matters, yes, but the bigger story is confidence. A young entrepreneur who buys term insurance knows that if tragedy strikes, his family will not lose their home. A freelancer with a savings plan knows her child’s education fund is safe even if work dries up. These are not abstract comforts. They allow people to take risks in work, knowing the family is protected. That freedom to create is priceless.

Some will still ask, why life insurance now? The answer is simple: because waiting has a cost too. Premiums rise with age. Health conditions can make coverage more expensive or harder to get. Every delay is not only a lost year of protection but also a higher bill later. The 0% GST on individual life insurance policies has made timing even more important. Buying today secures the benefit at the new lower cost.

Confidence to build

Let us also not forget savings plans. For freelancers, income comes unevenly. Investing in a savings-oriented life plan locks away money safely while providing life insurance coverage. So, in case of an unfortunate event, the dependents are taken care of.

Savings plans grow steadily while giving protection. Tax-free status on premiums makes such plans more attractive now. The same rupee buys more security and more growth. This is exactly what freelancers need: a tool that balances risk and reward.

The emotional impact cannot be overlooked either. Entrepreneurs often protect their business fiercely but neglect themselves. They insure machines, stock, and sometimes even offices. Yet their own life cover is missing. The family stands exposed while the venture looks shielded. This new relief on cost is a chance to correct that imbalance. Protect yourself and your people first.

The shift also changes how society views protection. For years, life insurance was seen as an extra, something to consider when the budget allowed. The tax-free premium reframes it. Now it feels like a right, not a burden. The government itself signals that protection should be accessible. When policy and personal need align, adoption rises. More people insure themselves, and fewer families are left vulnerable.

Yet, one must still choose wisely. Low cost should not mean blind purchase. Compare different plans. Check the coverage, the riders, and the flexibility. Ask how the savings element grows, or how the payout works. Transparency will matter as much as the tax benefit^*. The good news is that the removal of GST tilts the decision in your favour. What once felt heavy, now feels a lot lighter.

For freelancers and entrepreneurs, investing in an individual life insurance is no longer a burden. It is a partner, lighter on the wallet and stronger in purpose.

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ARN: ED/09/25/26723