Term insurance is the simplest form of life insurance policy, that provides life cover to the applicant, in return for regular premium payment for a certain period of time. Term insurance are meant to provide life cover to the policyholder, and if the insured dies during the policy period, the nominee will get the death benefits as given in the policy inclusion terms.
Getting term insurance is a great way to support your loved ones dependent on you, even after death. Health Insurance Advisor in Noida can help you in selecting the right term insurance that further helps with some tax benefits. Term insurance are not tax-free, but there are some income tax section under which you can do some tax saving. Tax benefits on term insurance Term insurance are tax free under three different sections of income tax, let's know about them. Section 80C Section 10(10D) Section 80D Tax benefits under 80C To claim tax benefits that are related to the term insurance policy, section 80C of the income tax act 1961 is commonly used. As per the section, one can claim the same amount of premium paid during a financial year. This amount will get deducted from your total taxable income. Around Rs. 1.5 lakh is the limit of eligible deduction. Bima plus is a Health Insurance Advisor in Noida Sector 18 that can assist you in getting the right policy having the maximum tax benefits. Tax benefit under section 10 (10D) The amount which the individual receives upon maturity or after surrendering the policy, or on the death of the policy holder cab be exempted from the tax as per section 10(10D) of income tax. There is one more thing you must know that term insurance having sum assured at least 10 times the premium only falls under the section 10(10D) Tax benefits under section 80D This income tax section is applicable for policies that are taken for yourself, children, parent or spouse. Via section 80D the deduction can happen for the premium the individual pays for a health insurance plan. It's really becoming difficult to choose the right policy that can save some taxes too. Therefore, we recommend Bima plus, a Health Insurance Advisor in Noida Sector 37 that can help in the process of selecting the right insurance plans.
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