Question 2: How will the premiums be treated in terms of tax benefit?

Premum paid for the health cover will get you an exemption of Rs 15,000 under section 80D whereas the remaining premium invested in the policy’s fund would give you an exemption of Rs 100,000 under section 80C.

Moneycontrol recommends:

For Manish, Mashruwala has a simple piece of advice, 'It’s best to keep your investment and insurance needs separate'. Which means, continue with a mediclaim policy for health cover and invest in instruments such as mutual funds or provident funds for investments.

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