Budget 2023 | Insurers expect higher deductions for health cover, ULIP taxation change

Union Finance Minister Nirmala Sitharaman will deliver the Budget for the current year on February 1, 2023. With this Budget, expectations are high that there will be announcements in favour of the insurance sector and policyholders. These may include higher deductions for health insurance premiums, separate tax deduction provision for life insurance along with change in Unit Linked Insurance Plan (ULIP) taxation. Let's take a look at these one by one:

Higher deductions for health insurance premiums

The Section 80D deduction in respect of health insurance premium is capped up to Rs 25,000/50,000. Considering the increase in costs of medical treatments, the cost of comprehensive insurances has increased manifold and hence, the erstwhile limit under this section may be increased to Rs 50,000/1 lakh, insurance experts say.