Do you know what’s the best part about insurance products? They not just insure your life but insure you against excessive tax deductions as well. This is why a good number of insurance sales happen during the months of January, February, and March—peak tax season.
These insurance plans will double up as tax savings plans. But you need to hurry for if you do not, the months will go by in a jiffy and without you noticing, the last date for filing taxes will stand right in front you.
Here are three plans that will save you from the taxman.
- Life Insurance
A must-have for everybody, think of life insurance as an umbrella term. Under this comprise term plans, money back plans, unit-linked plans. While these plans come with their own offerings, their tax-benefit remains the same. For the premiums paid on these plans, you can avail deductions up to INR 1.5 lakh under Section 80C of the Income Tax Act.
- Pension Plans
Unlike securing your life, these plans ensure you stay financially independent during your golden years. They’ve got two phases—accumulation and withdrawal. Therefore, there are two benefits here.
You can avail a deduction for premiums paid that falls in accumulation phase under Section 80CCC of the Income Tax Act; maximum limit 1.5 lakh. At the time of withdrawal, 1/3 for the accumulated fund is tax-free.
- Health Insurance
If you do not have this already, then only God’s blessing can help you. This one takes care of your medical bills and there are plans where you can include your entire family or plans which are designed to help battle even a critical disease such as cancer. Along with this, you can avail tax deductions under Section 80D of the Income Tax Act.
Insurance offers you the double benefits of protection and tax savings. So go ahead, grab your income tax calculator, see how much you want to save, and buy insurance plans.
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