Your Insurance Policy can help you get a tax rebate. Although most of us may not be insured or not even be aware of this benefit. Let us see how the various insurance policy can help us with a tax break

HEALTH INSURANCE
A premium up to Rs 15,000 on a medical insurance policy,you will get rebate from tax under section 80D of the Income Tax Act. And if you pay a premium for an insurance cover for your dependant parents you get an additional tax benefit of up to Rs.15, 000.If parents are senior citizens then the cap increases to Rs20,000.Hence a maximum tax benefit from a health insurance policy for your family is Rs30,000 or Rs35,000 depending on the age of your dependent parents

MEDICAL EXPENSES

With March approaching, tax payers will have to ensure they buy adequate insurance to claim benefits under Section 80C and 80D. But it does not necessarily mean that the entire limit should be used up, just to take tax advantage.Medical insurance premiums up to Rs 15,000 come under Section 80D. And life insurance premiums up to Rs l00,000 get benefits under Section 80C.

A proper mix of cover that gets tax advantage is essential to ensure that there is adequate insurance. But first, you need to identify the needs. And they will keep on changing, according to your age, dependents and other factors. Here's some help:

Between 25 and 35 years: A person who is just starting his career may not have many dependents. So, often, there is no need to have a really big life insurance cover.