It is that time of the year when the rush to save tax* begins. Searching for the right option can be a complicated and dull task, which most of us just want to get done with.

But did you know that investing in the right option can give you more than just tax saving? Life insurance is one such option that provides you with a life cover**, helps you Save Tax* & Get More!

Tax benefits offered under the Income Tax Act, 2025:

  • Section 123 (Read with Schedule XV):

    You can get tax benefits up to 46,800* on premiums paid under Section 123 (Read with Schedule XV). This deduction under Section 123 (Read with Schedule XV)* from taxable income can be claimed for an Individual or a HUF.

    You can also get tax benefits on premium paid up to 1,50,000 towards pension/retirement policies. However, if you surrender the plan, the pension/annuity received will be taxed as per the existing tax laws
  • Section 11 (Read with Schedule II to VII):

  • 1/3rd of the payment that you receive under the pension plan at the time of retirement is also tax-free*. This is known as commutation.
  • Section 126:

  • You can get tax benefits of up to ₹ 7,800* on health insurance premiums paid for Accelerated Critical Illness benefit@ on Life and Health option and All-in-one option under Section 126 of the Income Tax Act, 2025.
  • Section 11 (Read with Schedule II to VII):

  • 1/3rd of the payment that you receive at the time of retirement is also tax*-free. This is known as commutation.

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Please note: The tax write-up above is for general understanding and reference. You will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. Tax laws are subject to amendments from time to time. ICICI Prudential Life Insurance Company Limited expressly disclaims any liability to any person, if tax benefits stated above are denied to the customer.

@ Accelerated Critical Illness Benefit (ACI Benefit) is optional and available under Life & Health and All in One options. This benefit is payable, on the first occurrence of any of the 34 illnesses covered. Medical documents confirming the diagnosis of critical illness need to be submitted. The benefit is payable only on the fulfilment of the definition of the diagnosed critical illness. The ACI Benefit is accelerated and not an additional benefit, which means the policy will continue with the Death Benefit reduced by the extent of the ACI Benefit paid. The future premiums payable under the policy will reduce proportionately. If ACI Benefit paid is equal to the Death Benefit, the policy will terminate on payment of the ACI Benefit. To know more in detail about the ACI Benefit and terms & conditions governing it, kindly refer to the sales brochure. ACI Benefit term would be equal to policy term or 30 years or (75-Age at entry), whichever is lower.

** Life Cover is the benefit payable on the death of the life assured during the policy term.

* Tax benefit of ₹ 46,800 under Section 123 (Read with Schedule XV) and ₹ 7,800 under Section 126 is calculated at highest tax slab rate of 31.2% (including Cess excluding surcharge) on life insurance premium under Section 80C of ₹ 1,50,000 and health premium under Section 126 of ₹ 25,000. Tax benefits under the policy are subject to conditions under Sections 123 (Read with Schedule XV), 126, 10(10D), 202 and other provisions of the Income Tax Act, 2025. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on the above.

W/II/3696/2021-22

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