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Tax Saving Life Insurance Plans

How to save income tax with Life Insurance Plans?

Under the Income Tax Act, 1961 you can save tax on your hard-earned money by using our Life Insurance Products and solutions. You can get tax advantages at different stages of the policy.

• Stage 1: Entry Advantage – You receive tax benefits on your premium payments under Section 80C (life insurance), Section 80CCC (pension) and Section 80D (health).
• Stage 2: Earnings Advantage – Your investment with us gets the potential to grow and is not currently taxable.^~
• Stage 3: Exclusive Switching Advantage – You can switch between equity, debt and balanced funds anytime and these switches are not taxable.^~
• Stage 4: Exit Advantage – You receive a tax-free Maturity Benefit (the payout you receive when your policy ends) subject to conditions under Section 10(10D) of the Income Tax Act, 1961.

Tax benefits^ offered under the Income Tax Act, 1961:

• Section 80C:

  You can claim a deduction from your taxable income on account of the premium paid towards life insurance for self, spouse or children. You will be allowed a maximum deduction of up to `1.5 lakh.
  

• Section 10(10D):

  The returns earned from Life Insurance Policies are tax-free subject to conditions under Section 10(10D) of the Income Tax Act, 1961.

Details of plans eligible for tax benefits under Sections 80C and 10(10D):

• Section 80CCC:

  You can get tax benefits on premiums 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 10(10A)^*:

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

Please refer to the table below to view the details of plans eligible under Sections 80CCC and 10(10A)

• Section 80D:

  You can get tax benefits on premiums paid in any mode, other than cash towards health insurance policies taken for yourself, your spouse, your dependent children and your parents. The maximum tax benefits under Section 80D are as follows:
  • Tax benefit on premiums paid up to 25,000/- for yourself, your spouse or your dependent children (Limit is 50,000/- if the age of the insured* is 60 years old or more)
  • There is an additional tax benefit on health insurance premiums paid up to 25,000/- for covering parents (Limit is 50,000/- if the age of the insured* is 60 years or more).

*Insured is the person on whose health the insurance is taken.

Please refer to the table below to view the details of plans eligible under Section 80D

• Section 80CCE:

  Under this section, the overall limit of deduction from taxable income to get tax benefits under Sections 80C, 80CCC and 80CCD(1) is 1,50,000/-.