Tax Benefits Of Life Insurance

By BankBazaar | May 14, 2016
Tax Benefits Of Life Insurance
By giving you a set of options to plan your retirement, savings and investments, most Life Insurance policies help you save a lot of tax in the process. You get to avail these tax benefits under the Income Tax Act, 1962, in the form of deductions and exemptions. You can claim a deduction of Rs. 1, 50,000 from your total income through Section 80C of the Income Tax Act.
Getting Life Insurance, therefore, sounds like a smart way to hit two birds with one stone—tax planning and income guarantee in difficult times.
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2 thoughts on “Tax Benefits Of Life Insurance

  1. Ashok Kapoor

    I have jeevan suraksha policies with LIC and started receiving pension after 58 years of age, do I have to pay tax on LIC pension.

    Reply
    1. Team BankBazaar

      Hi Ashok Kapoor,

      The maturity proceeds under pension plans are tax-free up to 1/3rd of the amount. The remaining 2/3rd of the maturity amount needs to be used to purchase annuity plans as specified by IRDA. We suggest that you get in touch with LIC for the details on the policy that you hold.

      Cheers,
      Team BankBazaar

      Reply

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