The government's decision to eliminate Goods and Services Tax (GST) on health insurance policies has resulted in a significant rise in demand, with the overall adoption of higher coverage rising by 38%, as reported by Policybazaar. The report indicated that consumers are emphasizing financial security in response to increasing medical expenses, as the average health insurance coverage increased from Rs. 13,00,000 (US$ 14,659) into Rs. 18,00,000 (US$ 20,297). Almost 45% of customers are currently choosing policies in the Rs. 15,00,000-25,00,000 (US$ 16,914-28,191) bracket, whereas merely 18% opt for protection under Rs. 10,00,000 (US$ 11,276). The GST exemption by the Central government, starting from September 22, 2025, was intended to reduce the cost of life and health insurance by eliminating tax on premiums. The report additionally disclosed a change in behavior across different age brackets and regions. Millennials and older adults are progressively buying high-value plans, with senior buyers (aged 61-75 and older) demonstrating an 11.54% rise in high-sum insured policies. Tier-II cities have seen a significant decline in low-coverage demand, with interest in Rs. 15,00,000-25,00,000 (US$ 16,914-28,191) coverage has increased by 10.2%. Add-ons like Day-one Pre-Existing Disease and critical illness coverage are also becoming popular. Policybazaar observed that the zero-GST initiative has become a significant driver for health insurance uptake, indicating an increase in consumer consciousness regarding the necessity for thorough financial security.