Can I buy one policy for life and health right now?

Currently, you can only add health riders to life plans. Full health policies are sold separately until composite licenses are issued.

Will my premium decrease with a composite plan?

Most likely. Insurers will offer loyalty discounts and bundled pricing to encourage users to buy both covers from them.

What happens to my tax benefits under 80C and 80D?

They remain the same. You still get deductions for life (80C) and health (80D) premiums, just with a single receipt.

Is it risky to have only one insurance company?

Yes, it creates service dependency. If the insurer's service quality fails, both your life and health covers are affected simultaneously.

Can I port a bundled plan to another company?

Portability rules for bundled plans are still being finalized by IRDAI. Individual health plans remain easier to port today.

Will GST removal make these plans even cheaper?

Yes, the reduction or removal of the 18% GST will significantly lower the out-of-pocket cost for most policyholders.

Composite Licensing 2026 | Bundled Term + Health Insurance Guide

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Composite Licensing 2026: Can you now buy Term + Health from the same company?

The Indian insurance world is shifting to a one-stop-shop model. Here is how it changes your premium, paperwork, and peace of mind.

4 min read

OneAssure Team

March 19, 2026

Need advice tailored to you?

Looking for the right plan? You don't have to guess. Let us compare the fine print for you and give you an unbiased recommendation.

Need advice tailored to you?

Looking for the right plan? You don't have to guess. Let us compare the fine print for you and give you an unbiased recommendation.

The end of the two-app struggle

You probably have one app for your term insurance and another for health. You track two different renewal dates. You deal with two different customer support teams. This split exists because, currently, Indian law forces companies to pick a side. Life insurers can only sell life products. General insurers handle health and motor. But the 2026 Composite Licensing reform is about to change that. It is a massive shift. One license. Multiple covers. No more juggling.Imagine buying a 1 Crore Term Life cover and a 10 Lakh Health plan from the same brand. You get one policy number. You undergo one medical checkup. You pay one consolidated premium. For a 28 year old salaried professional, this saves hours of admin work. It also means your family only needs to remember one company name during an emergency. Speed matters when life hits hard.

Will bundling actually save you money?

Insurance companies love loyalty. When you buy two products, they save on customer acquisition costs. They will likely pass these savings to you. Expect bundled discounts. A 5% to 10% reduction in the total premium is a realistic expectation. For someone paying ₹25,000 for health and ₹15,000 for term life, a 10% discount is a clean ₹4,000 saving every year. This is on top of the recent GST relief on insurance premiums, making protection cheaper than it has been in a decade.However, do not confuse a bundled health policy with a health rider. Currently, life insurers sell health 'riders' like Critical Illness or Accidental Disability. These are not full health plans. They do not cover hospital room rents or surgery costs like a standalone policy does. Composite licensing will allow them to sell a full-blown Mediclaim policy alongside your term plan. It is the real deal.

Tax filing and the single dashboard

Tax season in India is usually a hunt for PDF receipts. You look for the 80C certificate for your term plan. Then you search for the 80D receipt for your health cover. With a composite insurer, you get one consolidated statement. It clearly splits your 80C and 80D benefits. Your CA will thank you. Your stress levels will drop.A single dashboard also simplifies claims. If you are hospitalized, your health claim is processed. If the situation worsens and a life claim is triggered, the company already has your data. They know your history. This reduces the 'information gap' that often leads to claim delays. OneAssure helps users track these nuances to ensure they are never caught off guard by fine print. Managing everything under one roof makes financial tracking as easy as checking your UPI transaction history.

The hidden risks of 'All Eggs in One Basket'

Convenience has a price. If you choose one insurer for everything, you face concentration risk. What if that company's claim settlement ratio drops? What if their customer service becomes unresponsive? If you are unhappy, you have to move two major life protections instead of one. Portability for health insurance is already a structured process in India. But porting a 'bundled' plan is still a grey area. We do not yet know if you can move just the health part of a composite plan to another insurer while keeping the term plan active.Another pitfall is the 'Master of None' syndrome. A company great at managing life funds might be terrible at tie-ups with hospitals. Before you bundle in 2026, check if the insurer has a wide cashless network in your specific city. A 10% discount is worthless if you have to pay out of pocket at the nearest hospital because the insurer has no tie-up there.

Should you wait for 2026 or buy now?

Do not wait. Insurance is priced based on age. If you are 27 today and wait two years for a bundled plan, your base premium will lock in at a higher rate. You also leave yourself unprotected in the meantime. Buy the best individual plans available today. When composite plans launch, you can evaluate if switching makes sense. Most top brands like HDFC, ICICI, and SBI are expected to be the first to jump on this. They already have sister concerns in both life and health, so the transition for them will be seamless.The unified KYC process is another win. Currently, you might have to submit your PAN and Aadhaar multiple times. In the composite era, a single KYC will onboard you for all covers. It is faster. It is cleaner. It is finally bringing Indian insurance into the modern age.