the Qs
the Qs

I am considering taking a life insurance policy but I am also interested in any tax benefits that might come with it. Can you tell me more about it?

Insurance
Insurance Q
Yes, so when you buy a term insurance, you start paying a premium every year, and you can use this premium as a deduction under Section 80C which comes with a limit of 1.5 lakh rupees. And a normal term insurance of 1 crore rupees has a premium which costs around 7,000 to 10,000 rupees every year. Now, the maturity amount is tax-free only if the premium that you have been paying is less than 10% of the sum assured or if the sum assured us at least 10 times the premium amount.
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the Qs

I am considering taking a life insurance policy but I am also interested in any tax benefits that might come with it. Can you tell me more about it?

Yes, so when you buy a term insurance, you start paying a premium every year, and you can use this premium as a deduction under Section 80C which comes with a limit of 1.5 lakh rupees. And a normal term insurance of 1 crore rupees has a premium which costs around 7,000 to 10,000 rupees every year. Now, the maturity amount is tax-free only if the premium that you have been paying is less than 10% of the sum assured or if the sum assured us at least 10 times the premium amount.
Rectangle 5937

Wait..would you like to get more like this?

Join 12,000+ readers who receive our insights decoding Personal Finance twice a week, so you can make the most out of your money.
No Spam. Only Finance
No Spam. Only Finance

Recent Posts

Why IRDAI bars ULIPs from being advertised as investment product

ULIPs combine insurance and investment, but hidden charges significantly lower returns compared to mutual funds. Understand IRDAI’s new restrictions on promoting ULIPs as investment products.

Tax rates of G20 Countries and India’s Global Standing.

Exploring the highest and lowest income tax rates across G20 countries and discovering how different nations tax their citizens, with India's highest rate at 30%.

Index Funds

Index funds make investing easy by tracking a market index, helping your money grow steadily. They offer lower fees and built-in diversification, providing a simple way to build long-term wealth.

Can you explain the major changes in capital gains taxation from the Budget 2024? I’m trying to figure out how these updates will impact my investments.

How much emergency fund should I have, and where to save it? Should I keep it in a separate account or invest?

Honestly, on the conservative side, one should have at least 12 months worth of living expenses as emergency savings and you cannot just create this once and forget about it.…

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Why join Dime's Tax Strategy Masterclass?

Comprehensive

Practical

Case Studies

This isn’t a normal masterclass. You will get a comprehensive hands-on experience of various “Tax Strategies” with our proven case-study based approach.

Get access to in-house built powerful Old vs. New Tax regime calculator, tax handouts, and more.
Thousands have benefited you can too!
Enroll Now

2000+ People have already saved Taxes