FB Twitter LinkedIn YouTube Google+
 
 
New Customers
Buy Now
 

Term Plan is a simple protection plan with life cover and no maturity benefits. It is an affordable form on insurance providing a large cover at a relatively smaller premium. A non-smoker male, 28 years of age, can get a term plan for a premium as low as Rs. 576/month, for a 30 year policy term.

While availing tax benefits should not be the primary reason to purchase a term life insurance, it is undoubtedly an efficient tax saving instrument. The premiums paid as well as the death benefits are exempt under tax regulations in India.

Benefits Under Section 80C

The section 80C of the Indian Income Tax Act allows exemption for life insurance premiums up to Rs. 1.5 lakh per annum. This amount can also include life insurance premiums paid for your spouse and/ or children.

Apart from this, insurance policies issued on or after April 1, 2012 get a tax deduction limited to 10% of the total sum assured. However, if a person is suffering from any ailment listed u/s 80DDB or suffers from a disability listed u/s 80U, then above 10% would be increased to 15%.

Benefits Under Section 10 (10D)

Apart from saving tax on premiums you can also save tax on the returns u/s 10 (10D) of the Income Tax Act. The maturity amount or death benefit received is fully exempt under the provisions of this section. This exemption is given to the beneficiaries and comes without an upper limit.

It is also stated in Section 10 (10D) that the maturity amount will be taxable if the premium payable in any of the years during the period of the policy exceeds 20% of the actual capital sum assured. However, this scenario rarely occurs in a term plan as the sum assured is generally much higher than the annual premium.

It is still wise to consult a tax expert advisor and take an informed decision because the benefits can vary for your specific case and tax bracket.

Tax benefits are subject to changes in tax laws. Please consult your tax advisor for details.

Max Life Tax Benefits Of Term Insurance
0/5 based on 0 reviews
     
 
 
 
 

People who viewed this plan also viewed

   

Quick Buy

  • Choose Cover Option

    Tips

    We advise you to choose an option as per your need. Do go through the basic features of all the three options before making a final decision.

  • Gender

    Tips

    Your gender is an important factor in deciding the life insurance premium as it is directly related to life expectancy

  • Date of Birth

    Tips

    You must be between 18 - 60 years of age to be eligible for this policy. Please enter your correct date of birth in order to get an accurate premium amount.

  • Tobacco Consumption

    Tips

    Choose yes if, in the last three years, you have consumed any Tobacco/Nicotine products which include Cigarette, Beedi, Cigar, Gutka, Flavoured Pan Masala, Khaini, etc. If not then you are classified as a non smoker.

  • Life Cover Tips
    Amount Tips

    DurationTips

    yrs