Unit Linked Insurance Plans or ULIPs offer several beneficial features that can help you grow your money and secure your loved ones in your absence. Whether you are saving for retirement, your child’s higher education, or to purchase a house, a ULIP can help you fulfil your goals.

What do you mean by maturity taxation in a ULIP?

ULIP maturity taxation refers to the tax rules on the maturity benefits of your ULIP. As per the current rules, you can claim deductions on the premiums paid towards a ULIP under Section 80C*. The payout that you receive at the end of the policy term is also tax-exempt subject to conditions under Section 10(10D)* of the Income Tax Act, 1961. However, these laws are subject to the conditions mentioned below.

If you bought a ULIP after April 1, 2012

  • You can avail an income deduction on the total annual premium paid under Section 80C* only if the premium amount is less than 10% of the claim amount
  • If the premium exceeds 10% of the total sum assured, you will be able to avail adeduction on the amount equal to 10% of the total sum assured

If you bought a ULIP before April 1, 2012

  • You can avail an income deduction on the total annual premium paid under Section 80C* only if the premium amount is less than 20% of the claim amount
  • If the premium exceeds 20% of the claim amount, you will be able to avail adeduction* on the amount equal to 20% of the total sum assured

Conclusion

ULIPs offer the dual benefit of investment and life insurance. They help you secure your future with good returns and, at the same time, keep your loved ones financially protected in case of an unfortunate event.

 


ICICI Pru Signature is one such ULIP that provides you with life cover# along with an option to invest in equity, balanced or debt funds or a combination of them. The plan also offers you an option to switch between funds~ as per your choice without any additional charges^. With ICICI Pru Signature, you can also avail income tax* benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

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* Tax benefits are subject to conditions under Section 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Good and Service 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 more details.

~ Past performance is not indicative of future performance.

# Life cover is the benefit payable on death of the Life Assured during the policy term.

^ This is only available under Fixed Portfolio Strategy.

ICICI Pru Signature UIN 105L177V03

W/II/4853/2021-22

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