About Tax Saving Life Insurance Plans
With the right tax saving plan, you can secure your family’s future and reduce your payable income tax. With LIC tax saving plans, you can avail of tax deductions up to Rs 1,50,000 under section 80C. This depends on the premium paid on your life insurance policy. This premium could be paid towards a policy in your name, your spouse’s name or your children’s names. In addition to this, income from the LIC policy received when the policy matures or in the form of bonuses is also exempted form taxes under section 10(10D).
Under the Health insurance policy, you can also claim tax benefits up to Rs 25,000 for yourself, your spouse and children. If your parents are senior citizens, an additional premium up to Rs 30,000 can be deducted for their medical coverage.
Why do you need to apply for LIC tax saving plans?
- Systematic savings
- Insurance cover
- Loan Facility
- Fixed premium throughout the duration of the policy
- Premium payable eligible for tax rebate under section 80C
- Tax-free amount payable on maturity under section 10 (10D)
What is the best LIC tax saving plan for you?
There is more than one LIC tax saving plan. The different tax savings plans offered by LIC can be categorized as:
- Endowment plans
Endowment plans offer the benefits of a life insurance cover as well as maturity benefits. Many of these plans also have a surrender value which amounts to a percentage of the premiums paid.
- Whole-life plans
A whole life plan insures your life for a certain amount that your nominee will receive on your demise. This benefit is tax free. You may also take a loan against this policy.
- Terms plans
A term plan gives you insurance cover for a fixed number of years. These policies do not have any cash value. Term policies can be later converted to a whole life policy.
- Money back plans
Unlike a typical life insurance plan, a money back plan gives you part of the maturity benefit in the form of evenly staggered survival benefits throughout the course of your policy.
- Child plans
Child plans are designed to ensure the security of your children’s future even if you are not around.
- ULIP Plans
For ULIP plans, part of the premium paid goes towards building an insurance cover and part is invested in stocks, mutual funds or bonds.
Still can’t decide what’s best for you? Contact an authorized LIC agent today.
Income Tax Slab for year 2017-2018(Assessment year 2018-19)
Frequently Asked Questions:
- What are the benefits of paying LIC premiums through Online?
-Quick and fast Can pay at your convenience Can be paid anytime Can be paid from anywhere No need to come to office Debit/ Credit card accepted (no card payment facility in any LIC offices)
- When can I pay the Insurance Premiums?
-30 days before the due date, 30 days after due date without interest
- If we surrender an LIC Policy by incurring losses, can we save tax on that lost amount?
- How can we calculate how much can we save tax from LIC Policy?
-Tax savings depends on the Income bracket which you are in.
- Which one is the better plan to invest in for tax savings?
-New Jeevan Anand plan Jeevan labh plan Jeevan Lakshya plan Jeevan Umang plan Money Back plan Term plans
The Tax slab rates may vary to current year.So given rates may change every year.