Premium Tax Benefit (80C/80D)

Calculate income tax savings on life and health insurance premiums under Section 80C and Section 80D. Find your annual tax benefit on all your insurance payments.

Insurance Premium Tax Saving Calculator

Section 80C (life) and Section 80D (health) — annual tax saving on insurance

Tax regime
Your tax slab
Life insurance premium (80C) Rs 50,000

Term, endowment, ULIP, LIC premiums — shared with other 80C investments

Rs 0Rs 1.5L
Rs
Health insurance — self + family (80D) Rs 20,000

Max Rs 25,000 deductible (Rs 50,000 if self is senior citizen)

Rs 0Rs 50K
Rs
Health insurance — parents (80D) Rs 20,000
Rs 0Rs 50K
Rs
Parents age
Total tax saving
---
incl. 4% cess
Sec 80C deduction
---
life insurance
Sec 80D deduction
---
health insurance
Life premium (80C eligible)---
Health — self + family (80D)---
Health — parents (80D)---
Total eligible deductions---
Net tax saving (incl. cess)---
80C vs 80D deduction split
80C (life): ---
80D (health): ---

Tax deductions available under old regime only. New regime does not allow 80C or 80D deductions. Consult a CA for exact tax computation.

Insurance deductions and tax saving breakdown
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ThriftRupee Insight

Insurance premiums are one of the most accessible tax deductions. Health insurance (80D) saves Rs 4,500–7,500/year at 30% slab for a Rs 15,000–25,000 premium. Including parents' health insurance doubles the deduction to Rs 50,000 (Rs 25,000 for self + Rs 25,000 for parents under 60). Adding senior citizen parents raises it to Rs 75,000 total — a Rs 22,500 tax saving at the 30% slab.

Insurance Premium Tax Deductions — Section 80C and 80D

Insurance premiums offer some of the most accessible tax deductions in India. Under the old tax regime, life insurance premiums qualify for Section 80C deduction (up to Rs 1.5 lakh total), while health insurance premiums qualify for Section 80D deduction (up to Rs 25,000 for self and family, plus up to Rs 50,000 for senior citizen parents — maximum Rs 75,000 total). This calculator computes your exact annual tax saving across all your insurance premium payments.

Frequently asked questions

What insurance premiums are tax-deductible?
Section 80C (up to Rs 1.5L total): life insurance premiums for self, spouse, and dependent children. Section 80D: health insurance premiums — Rs 25,000 for self+family (Rs 50,000 if self is senior citizen) + Rs 25,000 for parents (Rs 50,000 if parents are senior citizens). Maximum 80D deduction: Rs 1 lakh. Section 80CCC: pension plan premiums (LIC, annuity plans).
Can I claim 80D for parents not on my health plan?
Yes. You can claim deduction for health insurance premiums paid for parents even if they are not covered on your floater plan. If you pay a separate individual policy for your parents, the premium qualifies for 80D deduction — Rs 25,000 if parents are below 60, Rs 50,000 if parents are 60 or above.
Is ULIP premium eligible for 80C?
Yes, ULIP premiums qualify for 80C deduction subject to the condition that the premium does not exceed 10% of the sum assured (for policies issued after April 1, 2012). The maturity amount from ULIP is also tax-free under Section 10(10D) if annual premium ≤ Rs 2.5 lakh. Both conditions must be met.