Here’s how you can get Triple tax benefits this tax season

The first month of the year calls for new beginnings but it also requires us to look back in the past and learn from our mistakes.

Now is also the time when the employers will ask employees to submit their investment proofs to validate their tax saving investments.

While looking back at your investments or lack thereof, you wonder if you can manage to get a solution where you get more than just saving tax. Not just that, you might be also looking to ensure a secured future for yourself and your family.

It is at this point when you can opt for solution that gives that gives 3 benefits in 1 plan.

1) Protection for family – Term plan
a.The family looks upto the bread earners of the family – both for meeting the daily needs of the family and ensuring that the families future dreams are met. However, we all know that life is uncertain and hence it become the responsibility of the bread earner that the family meets its requirement, even when he or she is not around.

This is when term insurance comes in handy. You can take a huge term cover at a small premium and ensure that cover amount will be enough to meet family’s needs even in the absence of the policy holder.

2) Protection for you – Critical illness cover:

Lifestyle diseases are on the rise, owing to a hectic and modern way of life. The two biggest killers in this regard are cancer and heart ailments. Prevention in both cases is a limited attempt. Both have the potential to disrupt the normal ways of life and wreck a family financially. Costs involved in treatment of both are huge going upto lakhs of rupees. Hence financial preparedness is key, and being selective is smart.

Critical illnesses like heart diseases and cancer have risen exponentially amongst metro city dwellers which mean that being prepared financially is imperative in this day and age.

Health Insurance market is dominated by reimbursement plans, with sublimit for disease, copayment requirements, network hospitals etc. These factors, in combination, make treatment in your terms difficult.

Hence, critical illness plans assume significance. They have lump sum payouts, no affiliation with any particular hospitals, or any copayment requirements. They are available for longer terms and some products offer waiver of premiums for the entire term. With the rising costs and complexities, it is essential to consider specialized care against heart and cancer.

At a time and age when lifestyle diseases are becoming more common and varied, a health insurance plan is almost a necessity.

Only a small section of the population has a special health insurance plan, owing to the belief that the employer cover would suffice in case of a critical illness.
What many fail to anticipate is the real cost of treating a disease like Cancer, which can have such a deep impact that it throws their savings and hence their family’s future into disarray. Hence investing in a health insurance plan for you becomes a really smart choice this tax season.

3) Tax savings u/s 80C and 80D –

Investments under Section 80C

Section 80C helps in reducing taxes as it allows the maximum number of instruments to avail a total tax exemption upto Rs.1.5 lakhs in a year. Some popular investments which qualify for Section 80C exemption are as follows:

  • Life insurance premiums
  • 5-year fixed deposits
  • Investment in ELSS schemes
  • PPF investments
  • NSC, KVP investments, etc.
Calculate your monthly insurance premium here:

Investment towards health insurance under Section 80D

Health Insurance policy premiums also qualify for tax exemption under Section 80D.

The limit on exemption for premiums paid towards self and family is Rs.25,000, which increases to Rs.30, 000 if you are a senior citizen.

Another benefit is if you also pay premiums for a health insurance policy for your dependent parents, you can claim an additional exemption of Rs.25, 000 which increases to Rs.30, 000 if your parents are senior citizens.

Hence you can claim a total exemption of Rs.60,000 if you and your parents are senior citizens and you pay premiums for two separate policies for yourself and your parents.

Calculate your health insurance premium here:

Disclaimer: The quotes are indicative and TIL bears no legal liability for the calculation.

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