Difference between LIC and Mediclaim

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Daya

Daya (Querist)
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12 January 2023 what are difference between
LIC and Mediclaim for income tax purpose and for accounting purpose.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 January 2023 Life insurance is like your personal safety that your family can open once you are not around to fulfill their needs. It is a bond between the person getting insured and the insurance company that in the unfortunate event of the insured’s demise, the life insurance he/she paid premiums for, bears fruit in terms of financial benefits to the beneficiary/nominee.

The death benefits in most cases are income tax-free. So, the sum assured reaches the family without any substantial deductions. Life insurance offers an insurance cover for your entire life. You can think of it as your future full-proof savings plan for your family.
For income tax, the premium is deductible u/s. 80C of IT act...

Whereas Mediclaim or health insurance is a contract between the insured and the insurance company to provide you with a financial cover in times of medical needs. The Insured pays a fixed premium for his/her health cover.

If you have health insurance, you can either get the medical expenses that went through your pocket reimbursed or the insurance company pays the medical expenses directly on your behalf, both depending upon the health insurance policy that’s chosen. Certain health plans also cover the cost of your prescription medicines.
Mediclaim premium is deductible u/s. 80D of the act...