Term Insurance is a pure protection plan that offers coverage against an unfortunate event during the policy term. One of the most significant advantages of a term plan is the tax^{^} benefit associated with it. Term Insurance tax^{^} benefits can provide you with increased savings and better earnings. Read on to know more.

Term Insurance Tax Benefits^{^} under Specific Sections of the Income Tax Act, 1961

As mentioned above, there are several term insurance tax benefits^{^} that you can avail of. Following are a few of them:

• Tax benefits^{^} under Section 80C

  - The premiums you pay towards your term insurance plan can help you save money in the present as a tax^{^} benefit. You can get deductions of up to ₹ 1.5 lakh under Section 80C.
• Benefit under Section 10 (10D) - The tax^{^} benefits are also extended to the death benefit given to the nominee. When there is an unfortunate event, the family receives the policyholder’s death benefit or sum assured, which ensures that the family gets the necessary financial protection it requires, without losing out on taxes.

• Tax benefit^{^} under Section 10(10D)

  - A deduction of up to ₹ 25000/-^{^} is also available under Section 80D on premiums paid for term plans with a critical illness cover option.

Eligibility criteria to claim tax^{^} benefit:

A deduction can only be claimed by individuals and a Hindu Undivided Family (HUF) on the premiums being paid for their term plans or on the benefits received by them.