Kotak Life
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

How to Save Income Tax with Insurance

How to Save Income Tax with Insurance
  • 20th Jun 2019 |
  • 3,556

Tax planning is a crucial part of financial planning and if you do it wisely, you can achieve dual objectives. One is to meet your financial goals and the other is to save tax in the process. Investing in insurance policies can help you in saving tax. You can consider various tax-saving insurance options to maximize your tax savings.

List of Tax Saving Insurance Plan

Mentioned below are some common income tax-saving insurance plans for you. Each plan serves a different purpose and is an ideal addition to your portfolio.

  • Life insurance

A life insurance policy is a critical part of any financial portfolio. It offers a financial cover to the family of an individual in his absence. If you are the breadwinner of your family, you need to take life insurance in order to ensure complete security of your loved ones when you are not around. Life insurance is available in many forms that include whole life plans, endowment plans, money back plans,term plans, and unit-linked plans. No matter whatever plan you choose, they all offer equal benefits equal from a tax-saving purpose. You can avail of a tax deduction on the premium paid on these policies. You can claim a maximum maximum income tax deduction of INR 1.5 lakh as per Section 80C under the Income Tax Act, 1961.

  • Pension plans

Pension plans are a different type of life insurance plan. These plans have a different objective. They provide for you and your family after your retirement. There are two aspects of a pension plan—accumulation and withdrawal. During accumulation, you set aside money while you are in employment. Once you retire, you can withdraw the money. The tax benefits will only be applicable in the phase of accumulation. Maximum deduction allowed is INR 1 lakh under Section 80CCC. At the time of maturity, only one-third of the accumulated amount is tax-free and the balance is taxed at a marginal rate. In case of death of the beneficiary, the amount is tax-free.

  • Health insurance

A health insurance policy is an ideal addition to your portfolio. It is one of the best tax-saving instruments. It will cover for the expenses incurred from an accident or hospitalization, as well as, the pre and post-hospitalization expenses. It offers tax benefits for the premium paid for self, spouse, children, and dependent parents. The maximum tax benefit is INR 50,000 for senior citizens and INR 25,000 for others. The benefit can be availed under Section 80D of the Income Tax Act and the maturity value is tax-free for the sum received in case of a critical illness policy.

Consider these three investment plans to save tax. However, you need to remember that the purpose of investment should not be restricted to saving taxes. These plans will offer protection in case of a sudden death or an accident. They will provide for your family in case of your absence and will ensure that they remain debt-free. Consider your long-term goals and current health condition while selecting an insurance plan.

Invest in Term Insurance now and Save Tax

Read Here for More Related Articles:

Kotak e-Term Plan

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Reasons You Need Term Insurance Plan as a Self-Employed Person

Best Investment Plans for Children - Secure Your Child's Future

Increasing Term Insurance and Riders

Term Insurance With Riders In India

8 Benefits of Term Insurance You Should Know

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

What is a short term insurance policy?

Term Insurance Plans and Policies for Smokers

What Is the Correct Age to Buy Term Insurance?

5 Benefits of Early Retirement Planning

What are incremental term insurance plans?

Insuring Against Accidents with an Accidental Death Insurance Rider

What Are Insurance Riders and How to Choose Them in a Term Plan?

Why 1 Cr Term Plan Is Necessary For Family?

Term Plans are Definitely Cheaper than You Think!

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Can I Make Changes to My Term Insurance Policy Post Purchase?

Top 3 Reasons Why You Should Buy A Term Plan Now

What is Term Insurance - A Complete Guide

Term Insurance Age Limit – Term Plan for All Age Groups

While Buying Term Insurance Compare Features, Not Just Premiums

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Is Group Term Life Insurance Provided By Employer Sufficient?

Can You Increase Your Term Insurance Cover?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Should You Buy a Term Plan After 40?

What is Critical Illness Policy

Can I Buy Term Insurance for a COVID-19 Patient?

What Is a Renewable Term Insurance Policy?

How Much Term Insurance Do I Need

Everything About Claim Settlement Ratio for Term Insurance

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

6 Reasons That Make Term Insurance a Must Buy

How To Choose the Right Sum Assured Under a Term Plan?

Know How to Invest at Every Age for Larger Returns

10-Year Term Life Insurance Policy - Explained in Detail

Choosing Riders for Insurance Plans

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Different Types of Premium in Term Insurance

Insuring yourself against Ill Health with a Critical Illness Rider

Make Your Online Term Plan Your Familys Monthly Payout

How Does A Term Life Insurance Work in India?

What Should Be The Duration Of Your Term Plan in India?

Why Term Plan Should Be The First Step To Securing Your Future?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

How to Surrender Term Life Insurance When you have No Liabilities

Advantages & Disadvantages of Term Insurance in India

How to Identify Term Insurance According to Your Needs?

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Term Life Insurance Plan for Smokers vs Non-Smokers

Why should single women purchase term life insurance?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Should You Have Multiple Term Life Insurance Policies?

Importance of Term Insurance at Every Stage of Your Life

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Online vs Offline Term Insurance: Which Is The Better Option To Buy

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

5 Reasons to Buy Term Insurance When You are in Your 30s

Is term Insurance Needed for People With No Dependents?

Is ₹1 Crore Term Insurance Good Enough Cover?

6 Types of Death not covered in Term Insurance Plan

Gift Your Father A Term Insurance Plan This Father's Day

Is Life Insurance Investment Worthy Enough

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Why Should You Add a Rider to a Term Insurance Plan?

Do You Need Term Insurance Cover After Retirement?

Insurance Policy for Housewife In India

How To Change The Nominee in Term Insurance?

Why Premium Amount for Term Insurance is So Low?

Why does every working woman need life insurance?

What Are the Best Term Insurance Plans for Planning Retirement?

9 Most Frequently Asked Questions on Term Insurance

Endowment Plans vs Term Plans: Understanding the difference

Individual Life Insurance vs. Group Term Life Insurance

8 Things To Do After Buying Term Insurance

How Does Term Life Insurance Work? Learn the Benefits

Why Married People Should Buy Term Insurance Under MWP Act?

How Much Cover Should I Take In A Term Plan?

Busting Myths and Facts About Term Insurance Policies

What is Insurance Premium - A Detailed Guide

Insuring Protection Against Death With Death Insurance Rider

Why Term Insurance Is Important in times of COVID-19?

9 Ways to Help Family Members in Financial Trouble

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Why Should You Not Take A Term Plan Without Medical Test in India?

Eligibility Criteria for Buying Term Insurance in India

Can Term Insurance Plans Be Purchased As A Gift?

Steps on How to Buy Term Insurance Online

Tips to Choose the Right Term Period for Term Insurance Plan

5 Things To Consider While Buying Term Insurance Plan

Term Insurance – Why You Must Include In Your Financial Planning?

Planning For Children's Future

Can I Extend the Tenure of My Term Insurance Plan?

Do Beneficiaries Pay Taxes on Term Insurance?

What All Documents Required For Term Insurance In India?

Ensure Protection Against Death, Disease & Disability With Life Insurance

Advantages of Buying Term Insurance in Your 50s

Can I Get Term Insurance on Behalf of My Spouse?

What Types of Deaths Are Covered in a Term Insurance Plan?

Comparing Term Plans – What Should You Look Out For

How to Compare Term Insurance Online

Does Your Term Insurance Plan Cover Death Due to COVID-19?

How To Choose the Right Term Insurance Plan?

All About Term Insurance Inbuilt Coverage

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

What Happens if you Hide Facts in your Term Insurance?

Term Plan with Spouse Cover

4 Methods to Calculate How Much Term Insurance You Need

4 Things To Expect From Your Term Insurance Plan in India

Term Insurance Calculator - Everythng You Need To Know

Is a Term Insurance Policy Portable?

Term Insurance with Critical Illness

Can Senior Citizens Avail Term Insurance?

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Term Insurance: Smokers vs Non-Smokers

Why is it important to buy term insurance plan?

Why Should You Buy Term Insurance in 2022?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Is There Any Tax Benefit on Term Insurance?

Do I Need to Give a Medical Test for Term Insurance in India?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

How To Calculate The Amount Of Term Life Insurance You Need?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Tax Benefits of Term Insurance in India

Term Insurance Basics You Should Know

Is Term Life Insurance Plan an Investment or Expense?

Understanding Term Insurance Riders

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

How Not To Get Your Term Insurance Claim Rejected

What Should You opt for - Limited or Premium Pay?

Why Buy Term Insurance Plan With a High Cover?

All you need to Know about Term Insurance Plans for Housewives

What are the Documents Required for Term Insurance Plan?

Difference between Term Insurance and Life Insurance

Is It Good To Buy A Term Insurance Plan In 2022?

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Which Death Type Does Your Term Plan Not Cover?

Planning For Son or Daughter's Wedding

Does Term Insurance Cover Accidental Death?

4 Reasons Why You Need Critical Illness Cover

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

How Much Term Life Insurance Cover Do I Need in India?

5 Term Insurance Benefits for Single Women

Insuring Against Disability With Disability Insurance Rider

Protection for your family

Why Buy Term Insurance Even at Rising Rates?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Buying A Term Insurance Plan? Take These Factors into Account

Why Term Insurance Is Better Than ULIP?

Calculating Term Insurance Premium

Should Youngsters, Working Couples Buy Term Insurance Plans?

Why Should New Parents Buy Term Life Insurance?

8 Factors to consider before choosing a Critical Illness Insurance

Cost of Term Insurance Likely to Increase Soon

Different Types of Protection Plans