Tax Saving Life Insurance Plans

Life insurance policies are useful tax planning tools, because the policy holder is eligible for tax benefits under the Income Tax Act (1961). There are multiple modes for saving tax, but life insurance is one of the most effective tax planning instruments.
 
With ICICI Prudential Life Insurance plans, you can not only save tax but also look at achieving your long term goals and get financial protection to secure the future of your loved ones.

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), 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 equty, 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 of Section 10(10D) of the Income Tax Act (1961).

Tax benefits offered under the Income Tax Act, 1961:

  • Section 80C:

    You can claim deduction from your taxable income on account of premium paid towards life insurance for self, spouse or children. Deduction will be allowed up to a maximum of  1.5 lac.
  • Section 10(10D):

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

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

Sections Product UIN Category Available Online
Section 80C, 80D ICICI Pru iProtect Smart 105N151V02 Term Plan Yes - Buy now
Section 80C &
Section 10(10D)
ICICI Pru LifeTime Classic 105L155V01 ULIP Plan Yes - Buy now
ICICI Pru Guaranteed Wealth Protector 105L143V01 ULIP Plan Yes - Buy now
ICICI Pru SmartLife 105L145V01 ULIP Plan Yes - Buy now
ICICI Pru Elite Life Super 105L156V01 ULIP Plan Yes - Buy now
ICICI Pru Elite Wealth Super 105L157V01 ULIP Plan Yes - Buy now
ICICI Pru Cash Advantage 105N132V01 Money Back Plan Yes - Buy now
ICICI Pru Savings Suraksha 105N135V01 Endowment Plan Yes - Buy now
ICICI Pru Future Perfect 105N153V01 Endowment Plan Yes - Buy Now
ICICI Pru Sarv Jana Suraksha 105N081V03 Rural Plan No -  Explore
  • Section 80CCC:

    You can 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 10(10A):

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

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

Sections Product UIN Category Available Online
Section 80CCC & Section10(10A) ICICI Pru Easy Retirement 105L133V02 Retirement Plan Yes -  Buy now
Section 80CCC & Section10(10A) ICICI Pru Immediate Annuity 105N009V09 Retirement Plan Yes -  Buy now
  • 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 this Section are as follows:
    • Tax benefit on premium paid up to 25,000 for yourself, your spouse or your dependent children (Limit is 30,000 if the age of insured* is 60 years old or more)
    • There is an additional tax benefit of 25,000 for health insurance premium paid for covering parents (Limit is 30,000 if the age of insured* is 60 years or more).

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

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

Sections Product UIN Category Available Online
Section 80D ICICI Pru iProtect Smart 105N151V02 Term Plan with Health option Yes - Buy now
Section 80D ICICI Pru Heart/Cancer Protect 105N154V01 Health Insurance Plan Yes - Buy now
  • 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/-.

~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. Unlike traditional products, Unit linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. The names of the Company, Product names or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns. Advt W/II/1056/2017-18.

 
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