Under Life Insurance, you can get tax exemption on investment of maximum 1.5 lakh rupees, you can get tax rebate up to a maximum of 60 thousand rupees on investment in health insurance.
In the last few years, people have started taking life and health insurance to get tax exemption. Many of us may have bought our first insurance policy only to save tax. But one should not forget that the main objective of a life insurance policy is to provide financial security to you and your family and not to save tax. That is why one should always choose the right insurance policy based on the needs of himself and his family.
Take care of these things while taking health insurance
In order to choose the right plan, it is necessary and important to analyze and compare the different policies offered by different insurance companies. It is recommended to buy a policy from a reputable insurance company that suits your needs. Along with this, the record of that company should also be excellent in terms of service and settlement of claims, because these things matter a lot while making your claim.
You should also remember that an affordable policy is not necessarily the right policy for you. And lastly, you should read the policy document carefully to understand the terms of the policy well before taking a final decision. By having the right health insurance plan, you get the double benefit of coverage and tax savings.
Choose the right life insurance keeping in mind the economic needs
Before taking a term or life insurance, care should be taken of your family’s needs and liability. According to experts, term insurance cover should be at least 10 times your annual income. Apart from this, if you have a loan or loan, then it should also be kept in mind. While buying a term insurance plan you should keep in mind the facts of age and duration. To prevent inflation from disrupting your family’s lifestyle, you can take a higher insurance cover. Remember, if you do not give importance to inflation, it can put your family in further trouble.
How much is the benefit of tax exemption on health insurance?
|If you buy a policy for yourself and your wife and children||You can get a deduction of up to Rs 25,000 on premiums.|
|If you are a senior citizen||The deduction limit increases to Rs 30,000.|
|If you buy a policy for your parents||You can get a deduction of up to Rs 25,000.|
|If your parents are senior citizens||The deduction limit increases to Rs 30,000.|
|If you buy a policy for yourself, wife and children and buy another policy for your parents||You will get two deductions:|
Up to Rs 25,000 for your policy and up to Rs 25,000 for your parent’s policy
|If your parents are senior citizens and you buy a plan for them too||You will get two deductions: up to Rs 25,000 for your policy and up to Rs 25,000 for your parent’s policy|
|If you and your parents are senior citizens and you buy two policies, one of which covers your family and the other your parents.||You will get two deductions: up to Rs 30,000 for your policy and up to Rs 30,000 for your parent’s policy|
Benefits of tax exemption on life insurance
You can get tax exemption on the amount you pay for a life insurance policy in the entire financial year under section 80C of the Income Tax Act 1961. In this section, you can get a tax rebate on the maximum investment of 1.5 lakh rupees.
Invest in savings schemes to save tax
If you want a better return on investment as well as saving income tax, then you can invest in saving schemes run by the post office. Many schemes, including Senior Citizen Saving Scheme, Public Provident Fund and Time Deposit Scheme, get tax benefits. Apart from this, you can save tax by investing in tax saving FD or ELSS.