According to the financial expert, Indian consumers are now missing out on a hidden opportunity to earn thousands in rewards and cashback on their annual insurance payments, thanks to the recent GST exemption and card-linked reward programs.
Paying your life or health insurance premium could soon feel more like earning than spending — if done smartly. According to CA Nitin Kaushik, Indian consumers are now missing out on a hidden opportunity to earn thousands in rewards and cashback on their annual insurance payments, thanks to the recent GST exemption and card-linked reward programs.
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In a post on X (formerly Twitter), Kaushik explained how a “boring” insurance premium can turn into an ₹5,800+ win, with 0% GST and strategic payment choices.
GST-free premiums
Kaushik highlighted that since September 22, 2025, most personal life and health insurance premiums are now GST-free. That means an instant 18% saving simply by renewing after the new rule took effect. “No paperwork needed — just time your payment right,” he wrote.
This change, aimed at making essential financial protection more affordable, also opens the door for policyholders to combine tax-free payments with lucrative reward hacks.
Turning premiums into cashback, miles & points
Beyond savings on tax, Kaushik explained that paying insurance premiums via Amazon Pay — especially when linked to high-reward credit cards — can unlock up to 20% rewards value. These rewards can take the form of cashback, hotel loyalty points, or flight miles, depending on the card and platform.
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Platforms like CoverSure, PolicyBazaar, and direct insurer portals already allow these payments. “Stacking bonus offers and milestone spends can multiply your return,” he noted, encouraging consumers to explore card-specific reward structures.
Choose the right card
Not all credit cards treat insurance payments equally. Kaushik pointed out that premium cards — such as Axis Atlas, HDFC Infinia, Diners Black, and Tata Neu Infinity — typically offer the best value. “Some cards give you up to 20% total rewards value if you combine milestones and stacking offers,” he said.
Other popular options like SBI Cashback or Standard Chartered Smart still yield 1–2% cashback but may have lower caps or exclusions on insurance spends.
Voucher stacking strategy
For those who like to optimise every rupee, Kaushik shared an “advanced hack”: using partner platforms like InterMiles or Gyftr to purchase Amazon Pay vouchers using high-reward cards. These vouchers can then be used for insurance payments, allowing cardholders to double-dip on rewards.
However, he cautioned users to check payment limits — Amazon Pay typically supports transactions between ₹15,000 and ₹25,000, though this can vary based on KYC and insurer acceptance.
Play safe & Plan ahead
Kaushik reminded consumers not to leave payments till the last minute. “Third-party transactions can take a couple of days to reflect, and fee structures change often,” he warned. Staying updated with the latest terms on payment gateways and reward programs can help avoid missed payments or reduced benefits.
Earn for staying healthy too
In addition to payment-based benefits, many health insurers offer no-claim bonuses — increasing coverage by 10-20% each year if no claims are made. Kaushik emphasised that combining such offers with smart payment planning can compound value over time.
“Stop leaving money on the table,” Kaushik concluded. “Use a premium rewards card, pay after GST turned zero, and plan just a bit — you’ll turn a routine premium into free cashbacks, air miles, and better coverage.”
As digital payments and fintech platforms evolve, financial experts say the humble insurance premium could soon be one of India’s most underutilized money-making opportunities — if consumers play their cards right.
