2. Life insurance is one such product that people tend to buy
normally for their incidental benefit than its basic purpose.
It is similar to buying a car for depreciation benefits or a
mortgage for tax benefits.
The tax benefits that insurance policy offers is primarily
becoming a major center of attraction.
However, the major concern or objective of life insurance
plans is that they provide a strong financial backup to your
family in case of tight situations in life.
Hence, depending on the requirement and budget, one
should purchase an insurance policy for better future and
not merely for tax benefits.
3. One may wonder, why an insurance policy is often sold
as a tax planning product in the month of Jan-Feb-
Mar?
The answer is that it is the easiest sales pitch for many
dishonest agent. And, who does not like to save tax?
Moreover, it is one of the most convenient option that
insurance companies offer.
4. Tax benefits are indeed helpful in life insurance
products when compared to other financial products.
Here, you save tax on both, the premium paid and also
on the number of benefits received on maturity or
death.
5. The insurance premium paid towards the insurance policy can be
minimized from your taxable income, thereby lowering your complete
tax liability-
• You get a tax exemption up to Rs 1 lakh per financial year under
section 80C of the income tax 1961 for the life insurance premium
for yourself, your spouse or your children. This holds true for the
premium paid in a financial year for a policy is less than 20 percent
of the actual capital sum assured.
• One can claim a tax deduction on premium paid to purchase a
retirement plan from a good life insurance company in order to
receive pension from retirement under section 80CCC. The tax
deduction feasible is the premium paid or Rs. 1 lakh which is lower.
• Under section 80D, one can claim tax deduction on premium paid
for health insurance plan for yourself, your spouse, your parents or
children who are dependent on you.
• The amount of tax deduction is limited to Rs. 15,000 or the actual
premium you pay, whichever is lower in case of premium paid on
behalf of yourself, your spouse or children.
6. Amount available either at the end of the policy or on
death of the policy holder is exempt from tax under
section of 10D, subject to a few exemptions.
7. Registered office:
AEGON Religare Life Insurance,
2nd Floor, Paranjpe B Scheme,
Subhash Road,
Near Garware House,
Vile Parle (E),
Mumbai - 400 057
Call 1800 209 9090
SMS GUARANTEE to 56677
Website - www.aegonreligare.com
Centers spread across 118 cities in India.