Kotak e-Term Plan
Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.
Kotak E-Invest Plan
Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.
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.
Kotak Lifetime Income Plan
Kotak Lifetime Income Plan gives you the security of your income continuing thru your life and in your absence throughout your spouse's lifetime!
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.
Our representative will get in touch with you at the earliest.
When you are buying online term insurance plan, you are investing money to secure the future of your family. A life insurance plan pays a lump sum to the nominee of a policyholder in case the insured passes away before the plan’s maturity. When investing in such a policy, you surely want your loved ones to receive as much financial security as possible. This is why a life insurance policy is the best investment tool for you.
If you have been wondering that ‘‘do beneficiaries pay taxes on life insurance’’ then you will be happy to know the Income Tax Act, 1961 allows tax benefits on the money received from a life insurance policy.
The life insurance benefit is paid only when the policyholder passes away before the tenure of the policy is over. Hence, the money cannot be paid to the policyholder. This is why, when buying a life insurance plan, the insured has to provide the name of a nominee to the insurance company. This nominee receives the benefits once a claim is made.
You can choose your loved ones as the beneficiaries or a court can assign one for the purpose.
It is quite common to ask, “Do beneficiaries have to pay taxes” by anyone who is buying a term life insurance plan. The term plan offers some amazing tax benefits under the Income Tax Act, 1961. There are multiple tax deductions to help reduce the tax liability of the beneficiaries. The tax benefits are offered under Sections 80C and Section 10(10D).
Under Section 80C of the Income Tax Act, 1961 you can get a tax deduction on the money you pay as premium towards your insurance policy. The tax benefit limit is INR 1.5 lakh. The benefits can be enjoyed by individuals and Hindu Undivided Family (HUF) members.
If the premium value is over 10% of the sum assured then the maximum limit of the tax benefit will be 10% of the sum assured. This has been applicable since 1st April 2012. The maximum limit before that was 20% of the sum assured.
Apart from the tax deduction on the premium, the tax benefits can be availed on the money received as the death benefit under Section 10 (10D). As per this section, the nominee of the policyholder can receive the entire sum assured without having to pay any taxes on them. There is no maximum limit to the tax exemption under Section 10(10D).
When buying online term insurance, you must spend some time reading the terms and conditions mentioned in the policy document carefully to learn about the tax deductions. Understanding the benefits more closely can help you set your financial goals more effectively.
Read Here for More Related Articles:
- A Consumer Education Initiative series by Kotak Life
Kotak Assured Savings Plan is an affordable protection plan that enables you to accumulate wealth and strengthens your finances for the future.Know more
Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...Know more