With GST 2.0 now in effect, individual health insurance premiums are GST-free. This reform, announced at the 56th GST Council meeting, directly lowers the cost of policies for customers. For insurers, this is more than just a tax change, it’s an opportunity to expand reach and adoption through instant premium financing in insurance.

By coupling GST-free premiums with premium financing on EMI, insurers can remove affordability barriers, improve conversions, and ensure that more Indians access the health and life coverage they need.

What GST 2.0 Means for Insurance Business

Earlier, every health insurance policy carried 18% GST, making affordability a challenge at the point of sale. For example, a premium of ₹15,000 effectively cost ₹17,700. Now, the same policy costs ₹15,000, making it easier for customers to commit without hesitation.

For insurers, this reduction in upfront cost removes friction in decision-making. But the real growth lever lies in offering policy on EMI for insurance buyers. An insurance policy on EMI solution ensures affordability, drives higher adoption, and helps insurers reach customers who would otherwise delay or skip policy purchase.

Why Premium Financing Matters Post GST 2.0

Affordability continues to be the single largest driver of insurance adoption in India. Even after GST relief, many households find it difficult to pay large lump-sum premiums. This is where premium financing companies in India provide a unique edge.

By enabling customers to pay premium on EMI, insurers and agents can:

• Expand penetration in price-sensitive markets

• Increase policy conversions across Health and Life insurance

• Support long-term protection without premium-related drop-offs

• Build stronger trust with customers by providing affordable options

This makes premium financing on EMI for health insurance and premium financing on EMI for life insurance an essential part of modern insurance distribution.

How Can Insurance Customers Pay Premium on EMI?

For insurers and channel partners, the most common question remains: “How can insurance customers pay premium on EMI?” The answer is simple, by offering a range of EMI payment modes for customers to pay policy premium.

With the rise of digital solutions and instant premium financing for insurance customers, the process is quick, seamless, and requires minimal documentation. Eligibility checks can be performed instantly, often with just a mobile number, ensuring faster policy issuance and higher conversions.

EMI Payment Modes for Customers to Pay Policy Premium

Today, insurers can integrate multiple payment modes for customers to pay policy premium on EMI, giving flexibility and choice to policyholders.

These include:

• Debit card / credit card EMI for premium payments

• Cardless EMI for paying premiums

• Premium financing on EMI via NBFC marketplace

These varied payment modes ensure inclusivity across different customer segments, from salaried professionals to self-employed individuals and senior citizens.

Role of Premium Financing Companies in India

The shift toward affordability requires collaboration with trusted premium financing companies in India. These companies specialize in providing digital premium collection on EMI and act as enablers for insurers who want to scale their distribution.

ShopSe: Powering Premium Financing for Insurers

Among the leading premium financing companies in India, ShopSe is at the forefront of making insurance more affordable and accessible. ShopSe offers insurers a comprehensive premium financing solution that empowers both agents and distributors to maximise conversions by enabling policyholders to pay premium on EMI.

With ShopSe, insurers benefit from:

• Instant eligibility checks for premium financing

• Multiple EMI options including card EMI, cardless EMI, and NBFC-led financing

• Seamless digital onboarding with minimal documentation

• Premium financing app for agents to manage policies and payments with ease

By integrating ShopSe’s solutions, insurers can remove affordability as a barrier, drive faster policy issuance, and build stronger customer loyalty. For customers, ShopSe ensures flexibility, affordability, and peace of mind. For insurers, ShopSe ensures higher adoption and stronger business growth.

Growth Opportunities with Premium Financing

The combination of GST 2.0 and affordable insurance premium solutions in India opens up strong growth opportunities for insurers. By enabling insurance policy buyers to pay premium on EMI, insurers can:

• Increase insurance sales with premium financing

• Offer an EMI solution for insurance distributors

• Finance premium on EMI for faster conversions

• Expand insurance reach with EMI solutions

This positions insurers not only as providers of protection but also as enablers of financial inclusion.

Solving Customer and Agent Pain Points

For customers, the ability to split costs into EMIs removes financial stress. For agents and insurers, affordability drives sales. Some common scenarios include:

• Customers asking, “How can I pay health insurance premium on EMI instantly?”

• Agents exploring how to offer premium financing on EMI to increase conversions

• Insurers looking for the best premium financing solution for insurers to integrate across distribution channels

• Policyholders preferring premium financing without credit card, opting instead for cardless EMI or NBFC-led financing

In all these cases, having the right premium financing solution in place ensures faster decision-making and higher adoption.

The Bottom Line

The combination of GST 2.0 and premium financing in insurance creates a unique opportunity for the industry. By empowering insurance policy buyers to pay premium on EMI, insurers can remove cost as a barrier and accelerate penetration in both urban and rural markets.

For insurers, offering policy on EMI for insurance holders is no longer optional, it is a growth strategy. With the right premium financing solution for insurers, affordability becomes a competitive advantage, ensuring both scale and customer loyalty.

And with ShopSe’s premium financing solutions, insurers can unlock these benefits faster — helping customers access affordable protection while insurers maximise conversions and expand their reach.

The time to act is now. With instant premium financing for insurance customers, powered by ShopSe, insurers can align with evolving customer needs, strengthen their distribution, and make insurance more inclusive than ever before.