Insurance policies offer excellent tax benefits in India. Under Section 80C, premiums paid for life insurance (up to ₹1.5 lakh) are tax-deductible. Under Section 80D, health insurance premiums (₹25,000–₹75,000 based on age) are also deductible. Maturity benefits of life insurance are tax-free under Section 10(10D), if premium conditions are met. Term insurance and ULIPs also qualify for deductions. Tax benefits encourage long-term savings and risk coverage. Always collect premium receipts and check policy eligibility for deductions. Consult a tax expert for maximum advantage.
