Got an insurance policy recently and paid your premium? You might be wondering about the upcoming GST cut. Here’s a quick guide on why you can’t claim a refund, and what your options are.
Thank you for reading this post, don't forget to subscribe!The Bottom Line: If you’ve already paid your insurance premium, you won’t get a GST refund, even though the tax on life and health insurance drops to 0% on September 22, 2025.
Why No Refund?
The GST you paid was collected by your insurer at the time of your transaction and has already been deposited with the government. This process is considered final, and there’s no provision for a refund on taxes for premiums paid in advance. This holds true for all pre-payments, whether you paid a lump sum for a multi-year policy or made a scheduled payment that was due before September 22.
What About Future Premiums?
The good news is that any future premium payments that are due and paid on or after September 22, 2025, will be GST-free. This applies to all payment schedules—monthly, quarterly, semi-annually, or annually.
Is There a Way to Benefit?
Yes, but only if you’re in the “free-look” period. If you recently purchased a policy (usually within 15 to 30 days), you can cancel it. You’ll get a full refund of your premium and the GST you paid, minus any minor fees or charges for the days you were covered. Many people are doing this to cancel their recent policies and then buy a new one after September 22 to take advantage of the 0% GST rate.
What If My Free-Look Period Has Expired?
Unfortunately, if your free-look period is over, cancelling your policy will not get you a GST refund. The tax refund is only available if you completely unwind the policy within the specified free-look window.
