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Hindustan Times
3 days ago
- Health
- Hindustan Times
Why Every Indian Needs Both Health and Life Insurance?
Life is unpredictable, and financial stability can be shaken by sudden health issues or unfortunate loss of life. That's why every Indian needs a safety net that covers both medical emergencies and future uncertainties. This is where health insurance and life insurance come into the picture. Why Every Indian Needs Both Health and Life Insurance Many people think that having one of the two is enough. But in reality, they serve completely different purposes and you need both to be truly protected. What is Health Insurance and What Are Its Key Features? Health insurance is designed to cover your medical expenses. It pays for hospital bills, surgeries, diagnostics, and other treatment costs, depending on the coverage and terms of your policy. Some key features of health insurance include: Coverage for hospitalisation, surgeries, and daycare procedures Cashless treatment in network hospitals Cover for pre- and post-hospitalisation expenses Options like critical illness cover and mental health coverage Medical costs continue to rise each year, and even a basic procedure can cost thousands. Without health insurance, these expenses come directly out of your pocket. Understanding Life Insurance and Its Types Life insurance provides financial support to your family if something happens to you. It acts as an income replacement, ensuring your loved ones can manage their daily expenses, loans, and plans even in your absence. Types of life insurance include: Term insurance : affordable plans with high cover and no maturity benefits : affordable plans with high cover and no maturity benefits Endowment plans : offer savings plus insurance : offer savings plus insurance ULIPs: combine insurance with investment options The main purpose of life insurance is to protect your dependents from financial distress. If you're the breadwinner, a life insurance policy is not optional; it's essential. The Importance of Having Both Health and Life Insurance Choosing between health and life insurance is like choosing between a helmet and a seatbelt; you need both for full protection. Health insurance takes care of your medical bills when you're alive and need treatment. It helps you maintain financial stability while recovering from an illness or accident. Life insurance steps in when you're no longer there to provide. It helps your family continue their lives with dignity, meeting essential needs like education, EMIs, and daily expenses. If you have only health insurance and something unfortunate happens, your family might get no financial support. If you have only life insurance and face a major illness or surgery, the medical expenses could drain your savings. That's why both policies are equally important. How Health and Life Insurance Can Help You Save on Taxes? Apart from security, both health and life insurance offer tax benefits: Premiums paid for health insurance are deductible under Section 80D , with limits ranging from ₹ 25,000 to ₹ 1,00,000 depending on age and family size. are deductible under , with limits ranging from 25,000 to 1,00,000 depending on age and family size. Life insurance premiums are deductible under Section 80C (up to ₹ 1.5 lakh annually). premiums are deductible under (up to 1.5 lakh annually). Death and maturity benefits under life insurance are tax-free under Section 10 (10 D), subject to conditions. Digit Insurance processed 97% of health insurance claims with an average pre-authorisation time of under 27 minutes and reimbursements settled in approximately 2.5 days in FY25. For life insurance, the company reported payouts worth ₹288 crore, with a 99.53% claim resolution rate and an average settlement time of 1.9 days after documentation. How to Choose the Right Health and Life Insurance Plans? Don't just pick the cheapest policy. Choose based on your life stage, financial responsibilities, and health status. For health insurance, consider: Coverage amount Network of hospitals Co-pay clauses Claim settlement ratio For life insurance, assess: Your current income Future responsibilities Liabilities like home loans Number of dependents Ideally, your life cover should be 10–15 times your annual income. Review and update your policies regularly to ensure they align with your evolving needs. In India, many people underestimate the importance of having both health insurance and life insurance. They serve different but equally critical purposes; that is, health insurance helps during medical emergencies, and life insurance secures your family's future in your absence. Together, they offer complete financial protection. Having both is not a luxury, it's a necessity. Note to readers: This article is part of HT's paid consumer connect initiative and is independently created by the brand. HT assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently. Want to get your story featured as above? click here!
Mint
22-07-2025
- Business
- Mint
Top 5 income tax saving options with low or no lock-in periods
As the date of income tax submission nears, taxpayers across the country are actively seeking ways to bring down their taxable income without locking in their funds for years. While many popular investment instruments such as Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS) among others require long term commitments, several provide quick liquidity, lower risk and efficient Section 80C or other related deductions, thus making them ideal for those aspiring to prioritise financial flexibility. Keeping the same factors in mind below are five tax saving options that investors can avail without decadal or very long lock in periods and ensure that they are able to save money smartly. Several banking institutions provide 5 year tax saving fixed deposits (FDs) under Section 80C. Given these fixed deposits do have a five year lock in period, still they also provide premature liquidity in emergencies through a personal loan or overdraft, unlike PPF or NPS. Do keep in mind, the interest earned on such deposits is taxable, but the principal invested qualifies for deduction up to ₹ 1.5 lakh. Health insurance continues to be a reputable tax saving recommendation by banking institutions and financial advisors. Premiums of up to ₹ 25,000 ( ₹ 50,000 in case of senior citizens) are deductible under Section 80D. It is also important to note that there is no lock in and deductions can be claimed every year upon renewal, making it one of the most lucrative and flexible options. For salaried individuals, all contributions made to the Employee Provident Fund (EPF) automatically qualify for Section 80C deductions. Though EPF has a retirement oriented vision and structure, still partial withdrawals are permitted for marriage, education, home ownership and medical emergencies such as serious surgeries and procedures. Thus providing partial liquidity without breaking the investment. The repayment of home loan principal amount qualifies under Section 80C. The interest up to ₹ 2 lakhs is deductible under Section 24(b). There's no fixed lock in and deductions can be claimed yearly throughout the tenure of the home loan. It remains one of the most utilised tax saving strategies for home owners. National Pension System (NPS) provides deductions under Section 80CCD(1B) of up to ₹ 50,000 over and above the deduction provided under Section 80C. Though tier I is long term, tier II accounts offer flexible withdrawals. Do keep in mind that tier II is tax exempt only for government employees. Withdrawal of partial amounts are also permitted after three years under specific terms and conditions. Disclaimer: This article is for informational purposes only and should not be considered financial or tax advice. Please consult a qualified tax advisor or financial planner before making any investment or tax-saving decisions.
Time of India
14-07-2025
- Business
- Time of India
IT dept uncovers ₹500-cr tax refund fraud in Trichy, southern dist
Trichy: The income tax department has unearthed a ₹500-crore tax refund fraud involving fabricated income tax returns during investigations and search operations across Trichy and several other southern districts. In a statement on Monday, the department said raids were conducted across 19 districts, including Trichy, Pudukkottai, Salem, Madurai, Sivagangai, Theni, Virudhunagar, and Tirunelveli, exposing the large-scale scam. Preliminary findings revealed that several tax professionals and intermediaries across Tamil Nadu facilitated thousands of taxpayers in filing fraudulent refund claims. These claims were made by submitting fabricated details under various deduction provisions such as Section 80GGC (donations to political parties), Section 80D (medical insurance premiums), Section 80C (tuition fees), and Section 10(13A) (house rent allowance), among others. By falsely inflating deductions through these methods, taxpayers were enabled to claim illegitimate refunds, causing an estimated revenue loss of ₹500 crore to the government, the department said. Investigations also revealed that these agents had created dedicated email IDs specifically to file fraudulent returns on behalf of their clients. Thousands of returns were filed using these accounts, leading to the wrongful disbursal of crores of rupees in refunds. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cách giao dịch ETH/USD mà không cần nắm giữ Ether IC Markets Tìm hiểu thêm Undo The operations were led by Michael Jerald, IRS, additional director of income tax (investigation), Madurai, supported by officers Sweedha, IRS (Trichy), Raveendran, IRS (Madurai), Venu Kumar (Tirunelveli), and Ramesh, ITO (Madurai). In light of the findings, the income tax department has urged all taxpayers who may have filed incorrect or fraudulent returns during the current or previous financial years to voluntarily come forward and submit revised or updated returns. This, the department said, would help restore trust and allow taxpayers to avoid penalties, prosecution, and other legal consequences.
The Hindu
14-07-2025
- The Hindu
Income Tax dept busts major refund fraud in 19 districts of Tamil Nadu
The Income Tax Department has said that it has uncovered and thwarted a large-scale tax refund fraud involving filing of fabricated tax returns in Tamil Nadu. Investigations and search operations were carried out across 19 districts in Tamil Nadu, including Tiruchi, Pudukottai, Salem, Madurai, Sivaganga, Theni, Virudhunagar and Tirunelveli. These operations were conducted under the leadership of Michael Jerald, Additional Director of Income Tax (Investigation), Madurai, with the support of officers from Tiruchi, Madurai and Tirunelveli. The department initiated inquiries under various provisions of the Income Tax Act into the fraudulent claims of tax deductions that were falsely declared in order to obtain undue tax refunds. Preliminary findings revealed that several tax professionals and intermediaries across Tamil Nadu had been facilitating thousands of taxpayers to file fake refund claims by submitting fabricated details in their tax returns. As a result, widespread searches and inquiries were being conducted across south Tamil Nadu. The fraudulent claims predominantly involved claiming fake deductions under various sections such as Section 80GGC (donations to political parties), Section 80D (Medical insurance premiums), Section 80 C (Tuition fees) and Section 10 (13 A) House Rent Allowance along with other deduction clauses, a press release from the Income Department said here on Monday. Through these deceitful methods, tax payers were assisted in falsely enhancing their tax deductions enabling them to claim illegitimate refunds. The fraudulent refund amount is estimated to be approximately ₹500 crore. Investigations have unearthed that dedicated email IDs were created specifically by these agents to file fraudulent tax returns on behalf of taxpayers. Thousands of returns were filed through these email IDs resulting in crores of rupees being refunded wrongfully. During the course of the search operations, incriminating evidence had been recovered and seized. The Income Tax department continues to conduct investigations across all its offices. Taxpayers had been cautioned to remain vigilant and refrain from engaging in such unethical and illegal practices that not only cause revenue loss to the government but expose them to penal consequences. All taxpayers who may have filed incorrect or fraudulent tax returns during the current or previous financial years had been advised to voluntarily come forward and file revised or updated returns. This would not only help in building trust between the taxpayers and the department but also help them avoid penalties, legal proceedings, and prosecution, the release added.
Time of India
07-07-2025
- Health
- Time of India
Why health insurance is a smarter choice than just wellness plans
Introduction Staying healthy is everyone's goal. With gyms, fitness apps and wellness subscriptions, people believe they are protecting their health adequately. But are wellness plans enough? What happens when there's an unexpected hospitalisation or a major surgery? Here's where health insurance becomes crucial. What are wellness plans? Wellness plans are packages that encourage healthy habits. They may offer: Free gym memberships or discountsRoutine health check-upsAccess to dieticians or fitness coachesDiscounts on wellness products These plans are great for promoting a healthy lifestyle, but do not cover hospitalisation or medical emergencies. What is health insurance? Health insurance is a contract that covers your medical expenses in exchange for a regular premium. A standard plan generally pays for: Hospital billsSurgeriesDoctor consultationsMedicines and diagnosticsPre-and-post-hospitalisation expenses Key differences between health insurance and wellness plans AspectWellness plansHealth insuranceCoveragePreventive careHospitalisation and treatment costsEmergenciesNot coveredCoveredCostOften lowerVaries with coverage and ageTax BenefitsNoEligible for tax deductions under Section 80D Why health insurance is essential 1. Covers high medical costs Medical inflation in India is rising at about 14% annually. A single hospitalisation can cost lakhs of rupees. Wellness plans don't cover this. 2. Financial security An unexpected illness can drain savings meant for children's education or other goals. Having individual health insurance or a family floater plan means you don't have to tap into savings or borrow money during emergencies. 3. Offers tax benefits Premiums paid for health insurance qualify for tax deductions under Section 80D of the Income Tax Act. This helps you save while staying protected. 4. Broader network of hospitals Insurance providers often have a wide network of hospitals offering cashless treatment. This convenience is not available with wellness plans. 5. Covers pre-existing diseases Many health insurance policies cover pre-existing illnesses after a waiting period, making long-term treatment more manageable. 6. Additional benefits Modern health insurance plans come with wellness perks, too. These include: Free annual health check-upsDiscounts for maintaining healthy habitsRewards for fitness milestones So, you get both treatment cover and preventive care under one plan. When wellness plans make sense Wellness plans are not useless. They are excellent add-ons for: Encouraging regular health monitoringMaintaining fitness goalsGetting discounts on non-critical health services But they must not be mistaken for a replacement for health insurance. How to choose the right health insurance plan When buying health insurance, keep these points in mind: Assess your needs: Age, family medical history, coverage: Ensure it covers hospitalisation, daycare procedures and critical the exclusions: Read the policy wording to understand what's not hospitals: Opt for insurers with a wide cashless process: Look for a quick, hassle-free claim settlement. Tips to get the best from your health insurance Renew your policy on time to avoid losing coverage with top-up preventive health check-ups provided under your honest to avoid claim rejections. Conclusion Wellness plans are great for staying healthy, but fall short when life takes an unexpected turn. Pairing them with a reliable health insurance policy gives you complete peace of mind. It safeguards your savings and ensures you and your family get the best care without financial stress. Disclaimer - The above content is non-editorial, and ET Healthworld hereby disclaims any and all warranties, expressed or implied, relating to it, and does not guarantee, vouch for or necessarily endorse any of the content.
