Tax Benefits of Life Insurance Policy

Tax Benefits of Life Insurance Policy

Tax laws are subject to modifications from time to time. Before making any decisions based on the information below, please consult your tax advisor for more information.

Life Insurance Plans That Save You Money

life insurance policies are useful tax planning tools (1961). Because the policyholder is eligible for tax benefits under the Income Tax Act. There are a variety of ways to save money on taxes, but life insurance is one of the most effective.

With our Life Insurance plans, you can not only save money on taxes but also work toward long-term goals. Also, you can provide financial security for your loved ones.

How do life insurance plans help you save money on taxes?

You can save tax on your hard-earned money under the Income Tax Act of 1961, By using our Life Insurance products and solutions.  At various stages of the policy, you may be eligible for tax benefits.

1. Entry Advantage – Section 80C (life insurance), 80CCC (pension), and Section 80D (pension) provide tax benefits on premium payments (health)
2. Earnings Advantage – Your investment with us has the potential to grow while also being tax-free.
3. Switching Advantage – You can switch between equity, debt, and balanced funds at any time, and the changes are not taxable.
4. Exit Advantage – Subject to the conditions of Section 10(10D) of the Income Tax Act, you receive a tax-free Maturity Benefit (the payout you receive when your policy expires) (1961).

The Income Tax Act of 1961 provides the following tax benefits:

Section 80C: You can deduct premiums paid for life insurance for yourself, your spouse, or your children from your taxable income. The deduction would be limited to a maximum of 1.5 lacs.

Section 10(10D): Life insurance policy returns are tax-free. Only if they meet the requirements of Section 10(10D) of the Income Tax Act (1961).

Section 80CCC: You can get tax benefits on pension/retirement policies premiums up to 1,50,000/-. When you withdraw the plan, The pension/annuity you collect, however, will be taxed according to current tax laws.

Section 10(10A): At the time of retirement, 1/3 of the payment you receive under a pension plan is tax-free. This referred to as commutation.

Section 80D: You can get tax benefits on health insurance premiums. Other than cash, It can be paid in any mode. You can avail of these benefits yourself, for your spouse, for your dependent children, and your parents. The following are the maximum tax benefits available under this section:

Benefit from a tax credit of up to 25,000 on premiums paid for yourself, your spouse, or your dependent children (limit of 50,000 if insured* is 60 years old or older).

There is a tax benefit, up to 25,000 on health insurance premiums. It is paid to cover parents (the limit is 50,000 if the insured* is 60 years or older).