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What Our Plans Cover
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Premium paid for self
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Term
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Death benefit exemption under Sect...
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Maturity exemption
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Health rider premiums
Who Can Consider This Plan?
- Entry age typically 18 to 60, varying sharply by product
- Income sufficient to sustain the premium for the full term
- Full disclosure of health, lifestyle and family medical history
- Medical examination above a threshold age or sum assured
- Indian resident or NRI, subject to the insurer's country rules
What May Not Be Covered?
- Any deduction under the new tax regime, where 80C does not apply
- Premiums above the ₹1.5 lakh aggregate 80C limit
- Exemption under Section 10(10D) where the premium exceeds the prescribed proportion of the sum assured
- Deduction claimed for premiums on a parent's or sibling's policy
- Relief if the policy lapses inside the minimum holding period, when earlier deductions can be reversed
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading insurance companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
Our Insurance Partners
- Star Health Insurance
- Care Health Insurance
- Niva Bupa Health Insurance
- HDFC ERGO
- ICICI Lombard
- Bajaj Allianz
We represent multiple providers to help you find the most suitable option at the best price.
- Expert Guidance Personalised advice from experienced insurance professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
Life insurance premiums qualify for deduction under Section 80C, within the overall limit shared with provident fund contributions, ELSS, principal repayment on a home loan and the rest of that basket. Proceeds are generally exempt under Section 10(10D), subject to the conditions in force.
That combination makes insurance a legitimate part of tax planning. It also makes it the most heavily mis-sold category in the Indian market every March, when policies are bought in a hurry for a deduction and then held reluctantly for twenty years.
Our position is simple. Take the deduction on cover and savings you would have wanted anyway. Never let a deduction of a few thousand rupees commit you to a twenty-year premium you would not otherwise have chosen.
Who should consider it
Taxpayers under the old regime with 80C headroom remaining after provident fund and home loan principal, who also have a genuine insurance or long-term savings need.
Taxpayers under the new regime should note that 80C is not available there. If you have moved to the new regime, buy insurance for insurance reasons alone — the tax argument no longer exists for you.
Benefits
- Premium qualifies under Section 80C, within the overall limit
- Maturity and death proceeds generally exempt under Section 10(10D)
- A separate Section 80D deduction where the policy includes health riders
- Long-term savings alongside the tax relief
- Life cover as part of the same arrangement
- Predictable annual deduction, easy to plan around
What is covered, and what is not
Read the right-hand column first. It is the one that decides whether a claim is paid.
Typically covered
- Premium paid for self, spouse and children within the 80C limit
- Term, endowment, money back and unit-linked premiums, all eligible
- Death benefit exemption under Section 10(10D)
- Maturity exemption, subject to the premium-to-sum-assured conditions
- Health rider premiums, eligible under Section 80D separately
Typically not covered
- Any deduction under the new tax regime, where 80C does not apply
- Premiums above the ₹1.5 lakh aggregate 80C limit
- Exemption under Section 10(10D) where the premium exceeds the prescribed proportion of the sum assured
- Deduction claimed for premiums on a parent's or sibling's policy
- Relief if the policy lapses inside the minimum holding period, when earlier deductions can be reversed
Inclusions and exclusions vary between providers and between plans from the same provider. The wording in your own policy document is what governs — we will walk you through it before you buy.
How it works with us
- 1 Start with the goal, not the plan A school fee in 2038, an income from 2045, an estate to pass on. The goal decides the structure; the brand is the last decision, not the first.
- 2 We separate the protection from the saving You see what the cover costs and what the savings portion is projected to return, as two numbers rather than one blended promise.
- 3 Compared against the honest alternative Term insurance plus a mutual fund, on the same premium and the same horizon. Sometimes this plan wins; often it does not, and we say so.
- 4 Proposal, medicals and financial underwriting Medicals arranged at home. For larger premiums, insurers assess income as well as health.
- 5 Issued, with the illustration on file We keep the benefit illustration you were shown, so what was promised is on record for the whole term.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Check your remaining 80C headroom before buying. Provident fund and home loan principal often fill most of the limit already, in which case the deduction you are buying does not exist.
- Under the new tax regime there is no 80C deduction at all. Run our income tax calculator to see which regime is cheaper for you before treating tax as a reason to buy.
- A twenty-year premium commitment for a one-year deduction is a poor trade. If you would not want the policy without the tax benefit, do not buy it with one.
- Section 10(10D) exemption on maturity depends on the premium not exceeding a prescribed proportion of the sum assured. High-premium, low-cover policies can fail that test.
- Deductions already claimed can be reversed if you surrender inside the minimum holding period. Buying in haste in March and surrendering in year two is genuinely costly.
Documents required
- Completed proposal form with full health disclosure
- Identity proof — Aadhaar, passport or PAN
- Address proof
- PAN card, mandatory for life insurance
- Income proof — Form 16, salary slips or filed returns
- Bank statements, for larger premiums
- Medical reports, where the insurer requires them
- Recent passport-size photograph
Frequently Asked Questions
How much can I claim?
Life insurance premium counts within the ₹1.5 lakh Section 80C limit, shared with provident fund, PPF, ELSS, home loan principal and the rest of that basket. Most salaried taxpayers have less headroom left than they assume once EPF and loan principal are counted.
Is the deduction available under the new tax regime?
No. Section 80C does not apply under the new regime. If you have opted into it, buy insurance for protection or savings reasons alone — the tax argument no longer applies to you at all.
Is the maturity amount tax-free?
Generally yes under Section 10(10D), but subject to conditions — including that the premium does not exceed a prescribed proportion of the sum assured. High-premium, low-cover policies can fall outside the exemption, so check this against your own numbers.
Can I claim for my parents' policy?
Not under Section 80C, which covers premiums for yourself, your spouse and your children. Health insurance premium paid for parents is a separate matter and does qualify under Section 80D.
What if I surrender the policy early?
Deductions claimed in earlier years can be reversed and added back to your income, on top of a poor surrender value. It is the most expensive way to discover that a March purchase was a mistake.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.