Is GST still applicable on health insurance in 2026?

No, the 18% GST on individual health and life insurance was removed in late 2025. You now pay 0% GST on these premiums.

Can I claim Section 80D deductions in the New Tax Regime?

No, the New Tax Regime does not allow deductions under Section 80D. You must opt for the Old Tax Regime to claim insurance benefits.

How does the e-Bima account help with my ITR?

It provides a single, consolidated digital receipt for all your policies, making it easy to provide proof for tax deductions without multiple PDFs.

Can I claim the ₹5,000 preventive health check-up if I paid in cash?

Yes, unlike insurance premiums which must be paid digitally, preventive health check-up expenses up to ₹5,000 can be claimed even if paid in cash.

Are policies on Bima Sugam really cheaper?

Yes, many policies on the platform are 'direct' versions with zero or reduced commissions, leading to lower premiums for the same coverage.

What is the maximum total deduction under Section 80D?

You can claim up to ₹1,00,000 total: ₹50,000 for yourself/family (if senior) and ₹50,000 for senior parents. For non-seniors, it is ₹25,000 each.

Does term insurance maturity fall under tax-free income?

Yes, under Section 10(10D), the maturity proceeds or death benefit of a life insurance policy are generally tax-free for the nominee.

Bima Sugam Tax Savings Guide 2026 | Maximize 80C & 80D Benefits

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OneAssure

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The 2026 Guide to 'Bima Sugam' Tax Savings

Save more on your taxes and premiums using India's new unified insurance marketplace.

4 min read

OneAssure Team

March 19, 2026

Need advice tailored to you?

Looking for the right plan? You don't have to guess. Let us compare the fine print for you and give you an unbiased recommendation.

Need advice tailored to you?

Looking for the right plan? You don't have to guess. Let us compare the fine print for you and give you an unbiased recommendation.

It is March 2026. Your CA is calling. You are frantically searching through your email for that one health insurance PDF from three different companies. Sounds familiar? This year, things are different. The Bima Sugam marketplace has changed how we handle insurance and taxes. It is no longer just about buying a policy. It is about how much you keep in your pocket. No more hunting for receipts. No more paying high commissions. Everything is in one place.

Your e-Bima Account: The End of Paperwork

The biggest win for young professionals this year is the e-Bima account. Think of it as a digital locker for all your insurance. Whether you have a term plan from one company and health cover from another, they all show up here. When you file your Income Tax Return (ITR), you do not need to download five different premium certificates. The Bima Sugam portal gives you a consolidated digital receipt. This single document is enough to claim your deductions. It is fast. It is clean. It saves you from the last-minute panic of missing a ₹5,000 deduction because you lost an email.

Maximizing Section 80D: The ₹75,000 Strategy

If you are in the 30% tax bracket, Section 80D is your best friend. You can claim up to ₹25,000 for health insurance premiums for yourself, your spouse, and your children. But many young earners miss the bigger picture. If you buy a plan for your senior citizen parents through the Bima Sugam marketplace, you get an additional ₹50,000 deduction. That is a total of ₹75,000 off your taxable income. Since the marketplace offers zero-commission or low-cost digital policies, your actual out-of-pocket cost is much lower than it used to be. You get the same tax break for a smaller investment.

Don't Forget the ₹5,000 Health Check-up

Bima Sugam also makes it easier to track your preventive health check-up expenses. Under Section 80D, you can claim ₹5,000 for these tests. The best part? You can pay for this in cash and still claim it. In the 2026 fiscal, the portal helps you log these expenses so you do not forget them during tax season. It is a small amount, but it covers the cost of your annual blood tests or dental check-ups.

Term Insurance: The Smartest Way to Fill your 80C Limit

Section 80C is usually crowded with EPF and ELSS. But if you still have a gap in your ₹1.5 lakh limit, term insurance is the answer. Buying a term plan through Bima Sugam is incredibly cost-effective. Why? Because the 18% GST on term and health insurance was removed in late 2025. You are now paying the base premium with zero tax. A 28-year-old non-smoker can get a ₹1 crore cover for a very small annual premium. It is the cheapest way to secure your family and finish your 80C targets at the same time. Plus, under Section 10(10D), the eventual payout to your family remains entirely tax-free.

Zero Commissions and Lower Premiums

Traditional insurance often includes a commission of 15% to 20% in the first year. On Bima Sugam, many insurers offer 'Direct' or 'Zero Commission' plans. This means the premium you pay is lower because the middleman is gone. When your premium is lower, your tax-saving investment becomes more efficient. You are getting the same ₹25,000 tax deduction, but you are spending less money to get it. While the platform provides the infrastructure, expert-led distributors like OneAssure can still help you compare the fine print before you commit to a digital policy.

The Big Question: Old vs New Tax Regime in 2026

Should you stick to the Old Tax Regime? If you are a young earner with a home loan and a solid insurance portfolio, the answer is often 'Yes'. If you are maximizing your 80C (₹1.5L) and 80D (₹75k), you are already looking at ₹2.25 lakh in deductions. Add your HRA, and the Old Regime might still save you more money than the New Regime. Bima Sugam lets you simulate these costs easily. You can see your total premium across all policies and decide which regime fits your 2026 financial goals. If you choose to switch insurers using the portal's digital portability, your tax benefits carry over seamlessly without any break in coverage.

Your 2026 Tax-Saving Checklist

Link your Aadhaar: Ensure your e-Bima account is active to fetch all policy data automatically.
Check for 0% GST: Verify that your renewal premium does not include the old 18% tax.
Cover your parents: Use the marketplace to find a senior citizen plan and grab that extra ₹50,000 deduction.
Log your check-ups: Keep the receipts for your ₹5,000 preventive health check-up.
Download the Consolidated Receipt: Use the single Bima Sugam statement for your CA.

Taxes feel heavy when they are complicated. Bima Sugam makes them light. It puts the power back in your hands. You save on the premium, you save on the GST, and you save on the tax itself. It is a triple win for every young earner in India this year. Start early, buy direct, and keep your hard-earned money where it belongs: with you.