The above mentioned premium rate is for 1 crore of life cover for a 25 year old healthy male for a policy term of 15 years with regular income payout option. The annual premium amount for this assumption will be 6036 and monthly premium will be 504. The above mentioned premium rate is for 50 lakhs of life cover and 10 lakhs of accelerated critical illness cover for a 25 year old healthy male for a policy term of 15 years with lumpsum payout option. The annual premium amount for this assumption will be 5846 and monthly premium will be 489. The above mentioned premium rate is for 1 crore of life cover and 10 lakhs of accelerated critical illness cover for a 25 year old healthy male for a policy term of 15 years with regular income payout option.
◆ The annual premium amount for this assumption will be 7,576 and monthly premium will be 633.The above mentioned premium rate is for 1 crore of life cover for a 30 year old healthy male for a policy term of 30 years with regular income payout option. The annual premium amount for this assumption will be 9179 and monthly premium will be 766. In case of death, the nominee will receive 83,333 pm for 10 years.
➨ Tax benefits can be availed subject to issuance of policy and other conditions as per prevailing tax laws. This feature is only available for Life Option.The critical illness benefit is an accelerated benefit and the death benefit will be reduced by the critical illness cover paid to the policyholder. To know more about the illnesses covered, please refer to the Sales brochure. Available under Life and Health and All in One options.Accidental Death Benefit is up to 2 Crores.
Tax benefit under section 80C of the I-T Act, 1961, for life insurance premium
As per Section 80C(2) of the Income Tax Act, 1961, any amount paid to an insurer to buy or to keep a life insurance policy in force can be claimed as a deduction from gross total income by the policy holder. This implies that premium paid for a life insurance policy can be deducted from gross total income before arriving at taxable income subject to certain conditions.
aggregate, up to Rs 1.5 lakh in one or more of these investment options can be claimed as deduction from taxable income. Therefore, remember that even if you have invested more than Rs 1.5 lakh in total in these investment options including the premium paid for your policy, only Rs 1.5 lakh can be claimed as deduction from taxable income.
It is also to be remembered that there are several investment options listed as eligible under Section 80C. Therefore, this tax benefit can also b ..
The policy holder has to hold the life insurance policy and pay the premiums regularly for a minimum number of years as specified in section 80C in order to retain the tax benefit claimed. As per section 80C(5), if the policyholder surrenders his policy voluntarily or in case his policy is terminated by the insurer before a predefined time limit, on failure to pay the dues (i.e. premiums) , then the benefits under section 80C on premium paid for that policy would not be available to him. This me ..
Maximum premium allowed for claiming Sec 80C benefit
As per section 80C(3), in case of a life insurance policy issued on or before 31.3.2012 if the gross premium paid in any year exceeds 20% of the actual sum assured, then the deduction (from gross total income) will be available to the extent of 20% of the actual sum assured (SA) and the premium paid in excess of this amount cannot be claimed as deduction. As per Explanation to Section 80C(3A), actual sum assured simply means the sum assured which is least across all the policy years and does not include any bonus amount which is to be received over and above the sum assured This 'actual sum assured' shall also not include any premiums which are to be returned to the policyholder.
For policies issued on or after 1.4.2012, the above mentioned limit of 20% has been changed to 10%.
In case the insured suffers from severe disability or disease as specified by the Income Tax Act and rules and his/her policy was issued on or after 1.4.2013, then for them the limit of 10% will be increased to 15%. For this purpose, disability has to be one of those specified in section 80U e.g. autism, mental retardation and disease has to be one of those specified in section 80DDB read with Rule 11DD of income tax rules, e.g. blindness. So if you take a life insurance policy for your disabled son, then make sure that the gross premium per annum does not exceed 15% of the actual sum assured because the amount paid in excess of this 15% cannot be claimed as deduction from gross total income.
Minimum lock-in period for policy to retain tax benefit under section 80C
The policy holder has to hold the life insurance policy and pay the premiums regularly for a minimum number of years as specified in section 80C in order to retain the tax benefit claimed. As per section 80C(5), if the policyholder surrenders his policy voluntarily or in case his policy is terminated by the insurer before a predefined time limit, on failure to pay the dues (i.e. premiums) , then the benefits under section 80C on premium paid for that policy would not be available to him. This means that no deduction will be allowed to him for the premium paid for the year in which the policy is surrendered/terminated and the deductions claimed in earlier years for premium paid, if any, will be considered as his income in the financial year in which his policy is surrendered or terminated (as explained above) and taxed accordingly
As per section 80C(3), in case of a life insurance policy issued on or before 31.3.2012 if the gross premium paid in any year exceeds 20% of the actual sum assured, then the deduction (from gross total income) will be available to the extent of 20% of the actual sum assured (SA) and the premium paid in excess of this amount cannot be claimed as deduction. As per Explanation to Section 80C(3A), actual sum assured simply means the sum assured which is least across all the policy years and does not include any bonus amount which is to be received over and above the sum assured This 'actual sum assured' shall also not include any premiums which are to be returned to the policyholder.
For policies issued on or after 1.4.2012, the above mentioned limit of 20% has been changed to 10%.
In case the insured suffers from severe disability or disease as specified by the Income Tax Act and rules and his/her policy was issued on or after 1.4.2013, then for them the limit of 10% will be increased to 15%. For this purpose, disability has to be one of those specified in section 80U e.g. autism, mental retardation and disease has to be one of those specified in section 80DDB read with Rule 11DD of income tax rules, e.g. blindness. So if you take a life insurance policy for your disabled son, then make sure that the gross premium per annum does not exceed 15% of the actual sum assured because the amount paid in excess of this 15% cannot be claimed as deduction from gross total income.
Minimum lock-in period for policy to retain tax benefit under section 80C
The policy holder has to hold the life insurance policy and pay the premiums regularly for a minimum number of years as specified in section 80C in order to retain the tax benefit claimed. As per section 80C(5), if the policyholder surrenders his policy voluntarily or in case his policy is terminated by the insurer before a predefined time limit, on failure to pay the dues (i.e. premiums) , then the benefits under section 80C on premium paid for that policy would not be available to him. This means that no deduction will be allowed to him for the premium paid for the year in which the policy is surrendered/terminated and the deductions claimed in earlier years for premium paid, if any, will be considered as his income in the financial year in which his policy is surrendered or terminated (as explained above) and taxed accordingly
