Traditional Investments
LifeInsurance
Life insurance products are designed to provide financial security and peace of mind to the policyholder and their family in case of an unexpected death or critical illness. Life insurance products can also help in achieving long-term financial goals such as retirement, children’s education, etc.
Life insurance offers tax benefits to the policyholder under various sections of the Income Tax Act, 1961. The premiums paid towards life insurance products are deductible up to ₹1.5 lakh per annum under Section 80C. The maturity benefits or the death benefits received from life insurance products are also tax-free subject to conditions prescribed under Section 10 (10D).
Disclaimer: The information provided regarding the deduction of life insurance premiums under Section 80C of the Income Tax Act is for general informational purposes only. The actual eligibility for tax deductions, the extent of deductions, and the applicability of various conditions depend on the current tax laws and individual financial circumstances.
HealthInsurance
Health Insurance covers the medical expenses of the insured due to an illness or accident in exchange for a premium amount. It enables the insurance company to provide medical coverage for hospitalisation expenses, day care procedures, critical illnesses, etc. A health plan also offers multiple benefits, including cashless hospitalisation and free medical check-ups.
Health insurance can also provide tax benefits on the premium paid to the insurance company under Section 80D of the Income Tax Act, 1961.