Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Tax Planning and Tax Benefits of Life Insurance

Tax planning with tax saving life insurance is the best way to save tax. Click here to know how to save income tax with life insurance and tax benefits of life insurance

  • Apr 02, 2019
  • 15,947 Views

Can you save tax while investing in life insurance?

Life Insurance is one of the most effective tools to ensure that your family is taken care of financially long after you are gone. It works not only in the future but also in the present by taking away your worries and concerns. Another great advantage that life insurance offers in the present day is tax benefit.

Turn Life Insurance into a tax planning tool

Life insurance policies can be useful tax planning tools, as the policy holder is eligible for tax benefits under the Income Tax Act, 1961. Though there are multiple modes for saving tax, life insurance is one of the most effective tax-planning instruments. You can not only save tax but also look at achieving long-term goals.

Invest in Term Insurance now and Secure your Loved Ones

More benefits from life insurance plans

Life insurance plans from Kotak Life Insurance provides several other benefits: life cover , wealth maximization opportunities, child’s future planning options, retirement planning options and all of them coupled with effective tax saving options.

Advantages of Tax Planning

Here are a few advantages of tax planning using life insurance policies from Kotak Life Insurance:

80C & 80CCC Deductions

In case of Individual Assessee, the benefits are available for himself/herself, spouse, the children

In case of Hindu Undivided Family (HUF) assessee, the benefits are available for any member of HUF.

Premiums paid under a life insurance policy are eligible for deduction under Section 80C* of the Act, subject to the provisions of the said section

Contributions to a pension plan are eligible for income tax deduction under Section 80CCC* of the Act, subject to the provisions of the said section

The aggregate amount of deduction under section 80C and 80CCC should not be more than Rs. 1.50 lakhs

If the amount of premium paid in a financial year for a policy is more than 10% of the actual capital sum assured, then deduction will be allowed only for premiums up to 10% of the actual capital sum assured.

Exemption Under Section 10

The proceeds under a life insurance policy are exempt under Section 10(10D) of the Act, subject to the provisions of the said section.

Goods and Services Tax

All premiums and charges are subject to applicable taxes including gst on life insurance and cess as applicable, under the prevailing tax laws from time to time.

We suggest you consult your tax adviser to know more about tax benefits applicable to your life insurance plans.

Disclaimer

This information should not be construed as expert tax, legal or investment opinion from Kotak Mahindra Life Insurance Company Limited (formerly known as Kotak Mahindra Old Mutual Life Insurance Limited) & Company would not be responsible in any manner for decisions made on the basis of above information.

Read Here for More Related Articles:

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

Download Brochure

Features

  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

भारत में महिलाओं के लिए सरकारी योजना

Why PAN Card is Essential for Income Tax Filing?

A Comprehensive Guide to Understand the ITR 7 Form

All You Need to Know About Section 80C

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

How to File Income Tax Return without Form 16

What Investment Options Come with Tax Incentives?

How to save tax for salaried person?

Save Income Tax by 31st March: Here Is a Checklist

Presumptive Taxation for Business and Profession

Invest in Tax-Free Bonds: Understanding the Benefits and Who can Invest?

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

How to e file ITR on Income Tax Government Portal

Tax Season is Coming- Know How to Save Tax

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

Tax Rate Chart for FY 2022-2023: What is TDS Slab?

Tax Exemption and Scope of Coverage

Types of Income Tax Return (ITR) Forms

What is the Difference between Assessment Year (AY) and Financial Year (FY)?

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

Should you prefer a Guaranteed Savings plan over monthly income schemes?

What are the Different Types of Taxes in India?

Should one prefer a guaranteed savings plan over monthly income schemes?

ITR 1: Sahaj Form

How to create a savings plan and make good investment choices

All about TDS Payment Online & Due Dates

What is a savings plan?

Tax Saving Options other than Section 80C

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

Section 44AD of Income Tax Act for AY 2021-22

What is TDS Slab?

Interest Imposed Under Sections 234A, 234B and 234C

What is the difference between TDS and TCS?

Income Tax Calculator: How Life Insurance Policies are Taxed? Explained

What is Tax Deduction at Source (TDS)?

Do Beneficiaries Pay Taxes on Life Insurance?

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

How Do Assured Savings Plans Work and Why You Should Consider One?

How to File Income Tax Return - Everything You Need to Know

Income Tax Deductions Under Section 80C

Home Investment Plan to Buy Dream Home

What are Direct Taxes? How to Avoid being Overtaxed?

What is ITR 5 Form and How to File ITR 5?

Top 8 Tax-Saving Methods in India- Budget Planning

How to File ITR Online

How to File Form 10E for Tax Relief on Salary Arrears?

Is PF Withdrawal Taxable for NRI?

Why Tax Planning Should Be an All-year Round Activity

How to Save Income Tax with Insurance

How to Boost Your Savings with Guaranteed Results

How to View 26AS and Download Form 26AS Online

How can NRIs prevent double taxation in India?

What is Form 16A?

What are Deferred Savings Plans?

Basics of Guaranteed Savings Plan

12 Tax Changes in Budget 2022 that May Impact Your Personal Financial Planning

What is Section 80C Deduction?

Things to Do After Filing Income Tax Returns

Difference between Section 80C, 80CCC, 80CCD & 80D

What is the Difference Direct Tax and Indirect Tax

Tax-Savings Investments and Options in India

How to File TDS Return?

Maximize Your Savings: Tax Tips for Salaries Above ₹20 Lakhs

Union Budget 2023: Impact on Life Insurance

What is Rule 132 of Income Tax? How Does it Affect You?

How to create wealth through a savings plan?

Challan 280 - How to Use Challan 280 to Pay Income Tax

How Inflation Affects Savings and Investment?

9 Unusual Investments you Didn't Know for Saving Taxes in India

What To Do If Your TDS Is Not Deposited With The Government?

Importance of Savings Plan You Need to Know

Tax Saving for Self Employed in India

What is capital gains tax, and how it works?

3 Tips to Buy Guaranteed Savings Plan

प्रत्यक्ष कर और अप्रत्यक्ष कर में क्या अंतर है?

What is Salary Protection Insurance and Why You Need It

Income Tax Benefits for Doctors

8 Things to Help You Select a Savings Investment plan

How much gold can you keep at home? Limits and income tax rules explained

When Should TDS be Deducted and Who is Liable to Deduct it?

Why January Is an Important Month for Saving Tax?

Financial Benefits and Government Schemes Every Woman in India Should Know

Form 16, Form 16A, and Form 16B?

What is the Maximum Maturity Benefit in Assured Savings Plans?

Tax Benefit of Investing in Term Plan

Income Tax Deductions for Disabled Persons Under Section 80U

TDS rules on the sale of jointly owned property

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2021-22 & 2022-23

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

How To Save Tax Using Life Insurance?

How to Check Income Tax Returns Status Onine?

Financial Planning and Best investment options for Housewives

How to Get Form 16?

Pradhan Mantri Suraksha Bima Yojana

Union Budget 2023 and Tax Exemptions on Life Insurance Premium Over ₹5 Lakhs

What is the TDS Rate on Salary?

Section 80C Deductions as per Income Tax Act, 1961

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

What is EEE in income tax? 5 tax-free investment options to become crorepat

Saving Plans to Give Children a Debt-free College Education

आयकर स्लैब 2021-2022

सुकन्या समृद्धि योजना (SSY) के कर लाभ क्या हैं?

Income Tax Filing For NRI in India

How Should I Allocate A Monthly Savings Plan For Long-Term Benefits?

How to File Form 16 for Salaried Employees?

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

What is the Percentage of Tax Deducted at Source (TDS)?

Tax Saving Options for Salaried Employees

Tax Deductions You MUST Know

A Complete Guide for Filing ITR 3 Form

How to Save Tax on Salary Arrears?

Income Tax Deduction Under Section 80CCC In India

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

Tax Structure in India

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

9 Income Tax Myths That Could Cost You Money while Filing returns

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

Sub-sections Under Section 80C of the Income Tax Act, 1961

Tax-Free Income in India

Highlights of the Union Budget 2023-24

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

Best Savings plan for the middle class in India

Tax Planning Tips for a Newly Married Couple

ITR 2 Form – Complete Guide

What Is Advance Tax and How Is It Calculated?

Problems People Face with Tax Returns after a Job Change

E-Filing of Income Tax Returns in India

How To Save Tax Better with 80C

Complete Savings Plan for Low Income Earners

What is ITR & How to File Income Tax Return?

Section 80E: Tax Exemption on Interest on Education Loan

What is indirect tax and its types?

धारा 80डी आयकर अधिनियम, 1961

What is Section 80C - Explained in Detail

All you need to know About Tax on Inheritance

Plan your Daughter's Wedding With Best Monthly Savings Plan

How to e-Verify your Income Tax Return

How to File Income Tax Return for First Time Tax Payers

Income Tax Filing Using Multiple Form 16

Who Should Invest In Savings Plan

Guide for Tax Calculation on your Salary

Income Tax Exemption for Disabled

How to Claim a Tax Refund?

List of Important Income Tax FAQs

5 Popular Tax-Saving Schemes in India

What is Section 80CCC of the Income Tax Act 1961

Difference Between Guaranteed and Assured Returns

All You Need To Know About Assured Savings Plan

Investing Lump Sum Amount

What is Section 10D of the Income Tax Act?

Can You Get Term Insurance Without Income Proof?

Guaranteed Return Plans-Why is it a must for you?

Section 16 of the Income Tax Act (ITA), 1961

What is Form 26AS - All You Need To Know

What is Form 16B?

Tips to plan your savings in 2022

आयकर रिटर्न (आईटीआर) फॉर्म के प्रकार

What is Section 80C Deduction Limit?

Tax Saving Guide for 2019-20

Types of Riders in Insurance Policy

Understand ITR4 Form: How to Fill, Structure & Determine Your Eligibility

TDS Due Dates of FY 2022-23 For Return Filing

धारा 80सी आयकर अधिनियम, 1961

Insurance and Endowment: Everything You Need to Know!

Money Saving Tips for Single Women

Section 80G of the Income Tax Act

How to Pay Advance Tax Online in India

How to Check Income Tax Refund Status Online in India

How to Calculate returns on an assured savings plan?

How to file Form 16 online?

Are Financial Planning and Tax Planning the Same Thing?

Income Tax Exemption for Physically Handicapped Dependent

Penalty For Late Filing TDS Return

Easy ways to make personal savings plans

Why is Form 16 Important?

Tax Benefits of ULIP Plans Available for NRIs

इनकम टैक्स रिटर्न कैसे फाइल करें?

What is TDS Refund Process?

How can I get Form 16B from traces?

Personal Finance - Meaning, Importance, and Tips for Personal Finance

How To Invest In Guaranteed Return Plans For Higher Returns And Financial Security?

What is the Difference between Form 16 and Form 16A?

Budget 2019: Impact on the Common Man in India

Tax Benefits for Startups in India

How to Check Income Tax Refund Status Online in India

What is TDS Exemption Limit?

How to View 26AS and Download Form 26AS Online?

ITR-6: Guide to filing ITR-6 Form online

Have You Considered Term Insurance a Part of Your Tax Planning?

Income-Tax Liability- The Difference Between Gross Income & Total Income in Calculating Income Tax

Post Office Savings Scheme - All You Need to Know

Impact of GST on Life Insurance in India

How Much Money This Budget 2019 Can Help You Save

Understanding Tax Exemptions in ULIP (Old and New)

How to Download Form 16?

All about TDS on Salary under Section 192 – Kotak Life

Tax Saving Tips: Best Ways to Save Income Tax for 2021

Saving Income tax in 2017 - 18

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)