Skip the complexity of traditional wire transfers with EximPe's smart payment solutions
Complete international transfers in hours, not days, with real-time tracking
Streamline BOE and Shipping Bill regularization online, and generate e-BRCs effortlessly.
If saving taxes while guaranteeing your family’s future is important to you, understanding what insurance tax benefits are will be very helpful. Many people ask us at Eximpe: Can I use term insurance to claim both 80C and 80D deductions? It’s true—however, there are significant differences to consider. Below is a complete guide explaining how you can get the most from your term insurance tax benefits under the present Income Tax Act rules.
Term insurance offers tax benefits primarily under two sections of the Income Tax Act of 1961:
Let’s break down how each deduction works and their respective limits.
Expenses you pay for your term insurance policy are specifically covered by Section 80C.
You can get benefits up to ₹1.5 lakh yearly, as all your eligible insurances, PPF, ELSS and NSC come under Section 80C.
Most of what Section 80D is concerned with is health insurance premiums. If your term insurance allows a critical illness, hospital cash or surgical care rider, any premium you pay for these riders can be claimed under 80D.
Only health-related riders are entitled to a tax exemption, and the regular-term insurance premium does not qualify.
If you know the difference between the base policy and these riders, you can claim both 80C and 80D deductions with your term insurance. The advantage of reducing your taxes and providing complete care for your family can be gained simultaneously. If you require personal tips on getting the most out of your term insurance tax benefit, contact EximPe today. Make sure you are covered in the future and pay less tax in the present—pick the right term insurance and use every advantage.
Yes, you can claim a deduction under Section 80C for the base term insurance premium and under Section 80D for premiums paid towards health-related riders like critical illness or hospital care attached to your term plan.
You can claim up to ₹1.5 lakh per annum under Section 80C for premiums paid towards the base term insurance policy, subject to conditions on the mium-to-sum-assured ratio.
Only premiums paid for health-related riders (such as critical illness, hospital cash, or surgical care) attached to your term insurance qualify for Section 80D deduction—not the base premium itself.
You can claim up to ₹25,000 per year for yourself, spouse, and children (below 60 years), and up to ₹50,000 if covering senior citizen parents. The total can reach ₹75,000 if both you and your parents are eligible.
For Section 80C, the annual premium should not exceed 10% of the sum assured for policies issued after April 1, 2012. For Section 80D, only health-related riders are eligible, and you must keep proper documentation for tax filing.
Skip the complexity of traditional wire transfers with EximPe's smart payment solutions
Complete international transfers in hours, not days, with real-time tracking
Multi-layer encryption and compliance with international banking standards
Send payments to 180+ countries with competitive exchange rates