Health insurance has become a vital part of financial planning, offering protection against rising medical expenses. Many individuals are unaware of how taxes apply to their insurance premiums. The GST health insurance component is charged at 18% on policy premiums, which helps fund national healthcare initiatives while ensuring transparency in billing. Understanding this tax element allows policyholders to make better financial decisions and plan their healthcare budget effectively. Despite the GST charge, the overall benefits of having health insurance—like cashless treatment, preventive care, and income tax deductions—far outweigh the additional cost, making it a valuable long-term investment.