Key Points
If you buy a life insurance policy, what is your primary objective saying that as an earning member of the family, if that person is not available because of unforeseen circumstances, then there is going to be a financial burden on the family because there was an earning member who is no more...
The government has been trying to promote financial security and encourage individuals to buy such insurance policies for the welfare of the families and for themselves and to motivate in this direction, the government says that for the premiums paid, there will be a deduction in income tax..
But given the combinations that are available today in the form of a base policy and a super top up, a family of four can insure themselves at a very reasonable cost for a sum insured of up to Rs 50 lakh as well and the premiums that you pay not only for yourself, your spouse, your dependent children, even if the premiums that you pay for your parents are eligible for deduction under Section 80D...
Obviously, you need to java your life insurance and health insurance in place and these are the first and the basic steps when we talk about planning your financial portfolio. Given the kind of explanation you gave in order to have the right kind of insurance, how can one avail tax benefit as per 80C and 80D?..
Earlier the concept was that even if it is a ULIP policy and you pay as much as you wish, if you are paying more than say Rs 2.5 lakh premium, says you are paying Rs 5 lakh as premium, the maturity proceeds from an insurance policy are tax exempt under Section 10(10D)..
