Nothing is more unpredictable than life itself. While you may be in good health right now, you never know what will happen next. Hospitalization, natural disasters, auto theft, burglary, and riots are just a few examples of how things can go wrong when you least expect them to.
Aside from the emotional agony, these events can be financially draining for you and your family. While emotional grief may never be replaced, a General Insurance coverage can keep you financially secure.
What exactly is general insurance?
There are two sorts of insurance products: life insurance and non-life insurance. A General Insurance policy is an example of the latter. It is a life insurance policy that does not cover death. It could be health insurance, car insurance, motorcycle insurance, or travel insurance.
Let us examine in detail some of the most popular forms of General Insurance products and their tax advantages:
1. Medical insurance
Increasing work stress and sedentary lifestyles have a bad impact on our health and can result in a medical emergency at any time. With the rising expense of healthcare, Health Insurance is becoming increasingly important. There are now many different types of health insurance coverage available for individuals, families, medical surgeries, accidents, unintentional impairments, and more.
Tax Benefits: Of all the several types of general insurance available in India, tax benefits are most closely associated with health insurance. Section 80D of the Income Tax Act of 1961 allows you to deduct the premium you pay for your health insurance. The maximum deductible is set at In a fiscal year, the highest deductible limit for self, spouse, and children is INR. 25,000. If you are a senior citizen (over the age of 60), this can be increased to INR 30,000.
You can also add your parents’ tax benefits if you pay their health insurance premiums.
2. Automobile Insurance
Accidents on the road can happen in the blink of an eye.Purchasing a Motor Insurance coverage is an effective strategy to financially protect your vehicle in the event of an accident. According to the Motor Vehicles Act of 1988, third-party motor insurance is required in India.
Aside from the basic third-party liability insurance for cars and motorcycles, there are now comprehensive Motor Insurance policies that cover damages and personal injury in addition to third-party responsibility.
Tax Advantage: If you use your vehicle for business purposes, the premium you pay for car insurance is deductible. If the car is for personal use, however, you will not be able to claim any tax deductions for the premium you paid. If it is used for both personal and commercial purposes, the premium — in proportion to how much of the vehicle is utilized for business — is deductible as a business cost.
3. Travel Protection Insurance
Whether for business or pleasure, a foreign trip may quickly turn into a nightmare if you lose your passport or bags, experience a medical emergency, or experience a flight delay or cancellation. Travel Insurance coverage are now available to safeguard travelers from such unforeseen events.
They are one of the most common forms of General Insurance products and are offered to individuals, families, students, and older persons. Travel Insurance can be purchased for a single trip as well as several excursions.
Tax Benefit: Travel Insurance premiums, like auto insurance, have no direct tax benefits. However, if you are traveling for work, you may deduct Travel Insurance costs as a business expense and receive tax benefits.
4. Homeowners Insurance
Your home is most likely the most expensive purchase you will ever make. Needless to say, you’d want to keep it safe.Home insurance is a simple method to safeguard your home financially against man-made and natural disasters. A Home Insurance policy can be purchased to protect the structure of your home, its contents, or both. Home insurance policies typically cover fire, lightning, riot, explosion, earthquake, burglary, and a variety of other catastrophic disasters.
Home insurance policies typically cover fire, lightning, riot, explosion, earthquake, burglary, and a variety of other catastrophic disasters.
Tax Benefit: There are no tax deductions or tax benefits available for home insurance premiums.
With General Insurance, you can be prepared for life’s unexpected events.
Now that you’ve learned about General Insurance and its various varieties, it’s time to start shopping for one that meets your needs. Before you buy it, read all of the policies’ terms and conditions and compare them online to make an informed selection.