Budget FY 2018-19: Will it Provide Tax Relief for Health and Life Insurance & Pension Plans?

According to Sanjiv Bajaj, MD and VC, Bajaj Capital- Life insurance is an absolute necessity for individuals for financial security. Earlier, it had a defined and clear (almost) exclusive space in Section 80C of the Income Tax Act. Now a wide variety of products are added to Section 80C, the need and importance for life insurance family are going down.

While poor insurance penetration & insufficient life coverage is prevalent in India, offering tax-benefits for term insurance would be helpful in creating insurance demand would end up in building a strong social security layer for the individuals. As per Yashish Dahiya, Co-Founder & CEO, Policybazaar.com only 8 percent of the Indian population was covered by any insurance plan such as term insurance, health insurance, and ULIPs. There is a need to addresses the insurance industry in the much awaited Union Budget FY 2018. Government must provide benefits of social security; individuals of other countries such as the US are already covered under state-sponsored social security plans.