There are various provisions in the Income Tax Act that provide tax exemption if one has made investments in certain types of insurance. This infographic provides an overview of the same to help you understand some common investment options within insurance.

1. Insurance Avenues for Tax
Benefits
3 Broad Insurance Related
Tax Saving Areas
Life Insurance
Health Insurance
Pension Plans
Sources:
http://www.tax.fintotal.com/Sections/10-10D-Tax-Rebate/3976/68
*Based on Policy plan, insurer, and year of policy subscription, this could vary
Life Insurance
Health Insurance
Pension Plans
80C 1.5 L 10(D)
Tax benefit under
Section 80C of
Income Tax Act
Maximum
Deduction
permissible
Tax-free*
proceeds on
maturity/death
Smart Tips:
80D 15 K 20 K
Tax benefit under
Section 80D of
Income Tax Act
Maximum
deduction that can
be claimed
Maximum deduction
that can be claimed
(Senior Citizens)
80CCC 1 L 1/3
Tax benefit under
Section 80CCC of
Income Tax Act
Maximum
deduction that
can be claimed
At maturity, 1/3rd
of the maturity
amount is tax-free
Begin your Tax
Planning at the start
of the Financial Year.
i.e. on April 1st
In case the amount
paid towards life
insurance premium is
> 10% of the Sum
Assured, tax
deduction only up to
10% is applicable
Maturity proceeds in a
life insurance policy
are fully exempt in
the event the
premium paid did not
exceed 10% of the
Sum Assured in any
year
Surrender Value of a
policy is exempt from
income tax as per
section 10(10D)
provided certain
conditions are met