Tax benefits on health and life insurance (Sections 80D and 80C)
Insurance premiums can bring tax deductions under the Income Tax Act, but the exact limits and eligibility change with budgets and your chosen tax regime. Treat the mechanics below as the framework, and confirm the current figures and whether they apply under your regime before filing.
Health insurance and Section 80D
Section 80D allows a deduction for health insurance premiums paid for yourself, family and parents, with an additional allowance where senior citizens are covered. Preventive health check-ups can fall within the limit. The precise caps depend on current law and who is insured, so verify the applicable figures for the year.
Life insurance and Section 80C
Life insurance premiums can qualify for deduction under Section 80C, which is a combined limit shared with other eligible investments (such as certain provident-fund, ELSS and tuition-fee payments). Because 80C is a shared cap, life premiums compete with your other 80C claims.
The regime question
Whether you can use these deductions depends on the tax regime you opt for. Some deductions are available only under specific regimes. Choose your regime with the full picture, not just the insurance angle.
A useful reminder
Tax relief is a bonus, not the reason to buy cover. Buy the right protection first, size it to your needs, and treat the deduction as a benefit on top. Confirm current limits with an official source or a tax adviser.