 "Insurers lure customers via discounts, tax benefits")
The last quarter of the financial year is when people rush to buy insurance products as a tax-saving instrument. To make the most of the situation as well as to meet their January, February and March targets, insurers offer attractive discounts to lure policyholders. Tax benefits are also highlighted on insurers’ websites, to get the message across.
Sevantika Bhandari, director (marketing) at Max Bupa Health Insurance, says the insurer began an advertising campaign a few weeks ago. The company offers a 20 per cent discount on second year premium for policyholders for all health insurance plans.
“Through this, we are looking to promote our family health platform. This will be applicable to a joint family or extended family and will be a cost-effective product,” Bhandari adds.
Sector sources say 60-65 per cent of the new premiums are collected in the last quarter. “The fourth quarter is when individuals are looking at tax- saving products such as insurance. The discounts will be an added advantage,” says the product head of a private general insurer.
Life Insurance products are a popular tax-saving instrument. According to the Income Tax Act 1961, by investing in a life insurance (or health) plan, you are allowed to claim deduction on the premiums that one pays while calculating taxable income. This also means that the insurance premiums, which you pay helps reduce your tax outflow.
Under Section 80C, one can avail deduction of up to Rs 1 lakh premium paid on pure term, endowment and Ulip (unit-linked insurance plan) products. Further, Section 80D offers deduction up to Rs 35,000. The maturity proceeds from life insurance policies are also tax-exempt, subject to some conditions.
Life insurance companies offer tax saving products throughout the year. “Life insurers are enabling customers to buy the top selling tax saving policies, by giving them this option on the home page itself. This will not only be beneficial for customers, it will help us meet our targets as well, which have been impacted since the new product guidelines were implemented in January,” said a senior executive of a private life insurer.
Sevantika Bhandari, director (marketing) at Max Bupa Health Insurance, says the insurer began an advertising campaign a few weeks ago. The company offers a 20 per cent discount on second year premium for policyholders for all health insurance plans.
“Through this, we are looking to promote our family health platform. This will be applicable to a joint family or extended family and will be a cost-effective product,” Bhandari adds.
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According to her, the discount offer applies to all products, but is available only for people of certain age groups. The motive is to create awareness about health insurance and motivate customers to buy such products, she says.
Sector sources say 60-65 per cent of the new premiums are collected in the last quarter. “The fourth quarter is when individuals are looking at tax- saving products such as insurance. The discounts will be an added advantage,” says the product head of a private general insurer.
Life Insurance products are a popular tax-saving instrument. According to the Income Tax Act 1961, by investing in a life insurance (or health) plan, you are allowed to claim deduction on the premiums that one pays while calculating taxable income. This also means that the insurance premiums, which you pay helps reduce your tax outflow.
Under Section 80C, one can avail deduction of up to Rs 1 lakh premium paid on pure term, endowment and Ulip (unit-linked insurance plan) products. Further, Section 80D offers deduction up to Rs 35,000. The maturity proceeds from life insurance policies are also tax-exempt, subject to some conditions.
Life insurance companies offer tax saving products throughout the year. “Life insurers are enabling customers to buy the top selling tax saving policies, by giving them this option on the home page itself. This will not only be beneficial for customers, it will help us meet our targets as well, which have been impacted since the new product guidelines were implemented in January,” said a senior executive of a private life insurer.