Life Insurance Premium u/s 80C
- 8 Comment
Introduction
In this article I will be writing about the tax exemption for insurance premium. It is obvious that insurance premium is in everyone’s portfolio for the tax savings. Don’t buy the insurance only for the tax savings purpose. Also learn about the other facts related to tax savings on insurance premium. If you have any doubts, please post it in the comments section. Subscribe to our free email updates.
Life Insurance Premium u/s 80C
It is one of the most widely selected option for the tax saving investment. It is good if you have taken the insurance not only for the tax saving purpose, also choose it based on your need. I have written many article about the term insurance and insurance vs investment. The following are the few points related to the life insurance premium as the tax saving component:
- Tax deduction is allowed for the insurance premium paid for self, spouse and children.
- Insurance Premium paid for parents are not allowed for the deductions.
- Insurance company can be not only LIC, any other private companies also allowed.
- If you have more than one insurance policy, you can add all the policy premiums for the deductions.
- If you are paying the single premium plan, then maximum 20% of sum assured is allowed for the deductions.
Summary
I hope this article will be useful for knowing about the tax deduction for the insurance premium. If you have any doubts, please post it in the comments section.
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8 Comments on this post
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Firdaus said:
Today I’ve got a call from Kotak about a C2C (Company 2 Customer benefit) plan the company has launched. The person said that the company gives such plan only once in 5 years and to only 500 customers. The offer is only upto 15th Feb 2010. The min investment will be Rs 20,000 pa. 1st premium will carry 200% bonus. Min lock in period is 3 years. The plan will cover all life insurance benefits plus double accident benefit ie. twice of assured amount. At the end of maturity 10-12% return is assured. The amount will be invested in govt. floor funds ( I don’t know about it!). And the maturity amount will not go below the fund value at the time of investment. If the market will rise in future then the fund value will be given at that level and if it goes below then the fund value will be at level when it was taken.
Kindly give me some suggestion, is it worth taking it?
February 8th, 2010 at 5:27 am -
Firdaus said:
Forgot to mention that the invested amount will be exempted under 80C and maturity interest will be tax free after 5 years under 10D.
February 8th, 2010 at 5:28 am -
krishnas said:
Hello Firadus,
Thank you for the comments.
Thanks,
KrishnaFebruary 8th, 2010 at 9:16 pm -
krishnas said:
Hello Firdaus,
It is better you can do the own investigation before making any investments. There is many other good mutual funds in the market, need not be hurry.
Thanks,
KrishnaFebruary 8th, 2010 at 9:19 pm -
Life insurance Australia said:
Do some calculation before doing any insurance plan; subtract your resources from the amount of capital needed to meet your family’s total financial needs.
June 23rd, 2010 at 8:23 am
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