Worried about whether you are entitled to tax benefits for your term insurance plan, don’t worry we have an answer for you.
The answer is Yes, you can get tax benefits for paying the premium of your term insurance policy as per the Income Tax Act, 1961, and the guidelines of IRDAI.
Under Section 80C of the Income Tax Act, the premium paid towards a term insurance policy is eligible for a tax deduction of up to Rs. 1.5 lakh in a financial year. This tax deduction is available to individuals and Hindu Undivided Families (HUFs).
Furthermore, any amount received from a term insurance policy is also tax-exempt under Section 10(10D) of the Income Tax Act. So, if your policy's nominee received a death benefit, they won't have to pay taxes on it (given certain conditions).
Just keep in mind that these tax benefits may vary depending on your specific policy and insurance company. To fully grasp your tax situation, it's best to consult with a tax expert.
