Frequently Asked Questions
Yes, life and health insurance plans provide tax benefits. These benefits are explained below
Life insurance plans -
- Premiums paid for life insurance policies qualify for tax deduction under Section 80C upto a limit of INR 1.5 lakhs
- Surrender benefit, maturity benefit or death benefit received under life insurance plans are tax-free under Section 10 (10D)
- 1/3rd of the pension corpus which is withdrawn in cash is tax-free under Section 10 (10A)
Health insurance plans -
- Premiums paid for a health insurance plan for self, spouse and dependent children is allowed as a tax deduction under Section 80D. The limit is INR 25, 000. If you are a senior citizen, the limit increases to INR 50, 000
- Premiums paid for health insurance plan for dependent parents earns an additional tax deduction under Section 80D. This limit is also INR 25, 000 which increases to INR 50, 000 if the parents are senior citizens.
- If the claim is for an instance which is excluded under the plan’s coverage
- If the claim process is not properly followed
- If the claim is made in a policy which is lapsed
- If the claim related documents are not submitted to the insurance compan