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
Salaried employees are eligible for a tax-free medical reimbursement from your employer up to a maximum of Rs.15, 000 per annum. If tax-payer incurs expenses (up to Rs.50, 000) for medical treatment including nursing, training and rehabilitation of a disabled dependant, it will be reduced from the taxable income per annum under section 80DD. Where however, the dependant suffers from severe disability, the amount of deduction shall be Rs.75, 000 per annum. Disability, for the purpose of this section includes autism, cerebral palsy and also mental retardation.
You can also get deductions from taxable income up to a maximum of Rs.40,000 under section 80DDB of the Income Tax Act, if you are spending money on the medical treatments of your dependant such as AIDS, cancer, Parkinson’s disease, chronic renal failure, Thalassaemia etc. And for senior citizen parent it is up to Rs60,000 p.a.

LIFE INSURANCE
Under section 80C of Income Tax Act, any amount paid as a premium to cover the life of the tax-payer, his or her spouse or children shall be eligible for deduction up to a maximum of Rs1lakh from the total taxable income. But the premium amount should not exceed more than 20% of the sum assured of the policy.