{"id":1465,"date":"2023-01-27T09:18:52","date_gmt":"2023-01-27T09:18:52","guid":{"rendered":"https:\/\/www.rokce.com\/?p=1465"},"modified":"2023-01-27T09:19:09","modified_gmt":"2023-01-27T09:19:09","slug":"life-insurance-tax-benefits","status":"publish","type":"post","link":"https:\/\/www.rokce.com\/life-insurance-tax-benefits\/","title":{"rendered":"Life Insurance Tax Benefits"},"content":{"rendered":"\n

You must purchase life insurance, especially if you are the only provider for your family. In the event that something were to happen to you, your loved ones would not only have to deal with the emotional pain but also tricky financial times. However, you can ensure your family’s future financial stability with a life insurance<\/strong><\/a>. Additionally, you might benefit from sustainable life insurance tax advantages.<\/p>\n\n\n\n

What are the tax advantages of life insurance?<\/p>\n\n\n\n

Deductions and exemptions make up the majority of the life insurance tax advantages. Let’s go over each of these life insurance tax benefits<\/strong> in further detail.<\/p>\n\n\n\n

The tax benefits mentioned in the article may not apply if you opt for the new tax regime since many tax exemptions and deductions have been scrapped within the new regime. They are also subject to any changes in the law.<\/p>\n\n\n\n

What deductions are available under Section 80C?<\/p>\n\n\n\n

You are qualified for a Section 80C annual tax deduction of up to Rs. 1.5 lakh if you purchase a life insurance policy from an insurer that has been approved by the Insurance Regulatory and Development Authority of India (IRDAI). Visit the official website of IRDAI for further details.<\/p>\n\n\n\n

The income tax advantages of life insurance policies are encapsulated in Section 80C of the Income Tax Act of 1961. The premium you pay for your life insurance policy is eligible for a deduction under this Section, subject to the restrictions listed in Section 80C.<\/p>\n\n\n\n

Additionally, you can maximise your life insurance tax benefits by purchasing a policy for your spouse or child. If issued after April 1, 2012, a tax deduction of up to 10% of the sum insured is permitted under Section 80C.<\/p>\n\n\n\n

What exemptions are permitted by Section 10(10d)?<\/p>\n\n\n\n

The exemptions are based on the date the policy was issued and the requirements listed in section 10(10D) of the Income Tax Act, much like the tax deductions you can take advantage of on a life insurance policy. The exemptions, which apply to insurance payouts, are a key component of the tax advantages of life insurance.<\/p>\n\n\n\n

For life insurance plans purchased after March 31, 2012, the exemption premium paid for any given year throughout the policy term cannot exceed 10% of the total assured.<\/p>\n\n\n\n

For life insurance plans purchased between the first of April 2003 and the last day of March 2012, the premium paid during any given year during the policy term cannot exceed twenty percent of the sum assured. A life insurance calculator<\/strong><\/a> is a tool you may use online to determine the amount of coverage required based on your needs.<\/p>\n\n\n\n

In each of these scenarios, Section 10 completely exempts the money you or your nominee receives when a life insurance <\/strong>policy matures or as a bonus from income tax (10D).<\/p>\n\n\n\n

Answers to a few common questions regarding India’s life insurance tax benefits<\/p>\n\n\n\n

  1. How much income tax may I save by paying the premium for a life insurance policy?<\/li><\/ol>\n\n\n\n

    A life insurance policy’s ability to reduce your taxable income is dependent on a number of elements, including the kind of policy it is and the premium you pay. You are eligible for a tax deduction for the life insurance premium up to Rs. 1,50,000 per year under Section 80C.<\/p>\n\n\n\n