Mediclaim as TAX SAVINGS instrument

Buying an insurance policy not only provides you a secured future but also saves you a good amount of taxes. The tax benefits of an insurance policy are even acknowledged by the Indian government and therefore, in order to promote insurance, the government provides tax rebate to the policyholders.

• Deduction allowable under Section 80 C for payment of Life Insurance Premium: The amount of premiums paid towards a life insurace policy is tax deductible and also, the income received from any such insurance policy is totally tax free.
• Deduction under Section 80 D: Deduction allowed up to Rs. 15,000/- if an amount is paid to keep in force an insurance of health of assessee and his family (i.e. Spouse and children). An additional deduction up to Rs. 15,000/- if an amount is paid to keep in force insurance on the health of parents. In case of HUF, deduction is allowed up to Rs. 15,000/- if an amount is paid to keep in force a health insurance policy for any member of HUF.
• Exemption of Income Tax under maturity/death claims proceeds under Section 10 (10D): Under the provisions of Section 10 (10D) of the Income Tax Act, 1961, the maturity/death claims proceeds of a life insurance policy, including the sum allocated by way of bonus on such policy is exempted from income tax.