Both life insurance and medical insurance premiums attract a GST rate of 18 per cent. Recently, many leaders from opposition-ruled states have requested Finance Minister Sitharaman to reduce GST on medical insurance and premiums. Both life insurance and medical insurance premiums attract a GST rate of 18 per cent. Recently, many leaders from opposition-ruled states have requested Finance Minister Sitharaman to reduce GST on medical insurance and premiums. Zee News :Business