Future Generali India Life Insurance Company Limited is now Generali Central Life Insurance Company Limited. Generali Central Life Insurance Company Limited – A joint venture between Generali – one of the world’s leading insurers and Central Bank of India, India’s finest nationalised bank.
Future Generali India Life Insurance Company Limited is now Generali Central Life Insurance Company Limited. Generali Central Life Insurance Company Limited – A joint venture between Generali – one of the world’s leading insurers and Central Bank of India, India’s finest nationalised bank.
How Term Insurance Tax Benefit Helps You Save on Income Tax
2 mins
1.8KWhat is a term insurance plan? Term insurance plans provide pure life cover for a specific time without a savings or profit component. You can opt for a larger life cover at a lower premium as compared to endowment policies. The nominee receives death benefits if the insured passes away within the policy term. In most plans, there are no maturity benefits.
Who can claim income tax benefit on term insurance? Term life insurance benefits in terms of tax deduction can be availed by an individual for themself, their spouse, and their children.
Is there a tax benefit on term insurance premium? Yes, there are tax benefits on the premiums paid as well as the amount received as Sum Assured . Under Section 80C , income tax benefit on term insurance is provided for premiums upto ₹1.5 lakhs per year. This can also include premium payment for your spouse and children.
What are the conditions for tax benefit on term insurance premium?
- If the yearly premium paid is higher than 20% of sum assured, tax deduction on term insurance premium can be availed upto 20% of sum assured.
- For a term insurance policy issued on or after 1st April 2012, premium upto 10% of sum assured can be tax-deductible.
- For a policy issued on or after 1st April 2012, premium upto 15% of sum assured can be tax-deductible if the insured suffers from an ailment listed under Section 80DDB or a disability which is listed under Section 80U of the Income Tax Act.
What are the term life insurance benefits on returns in terms of tax? Apart from tax benefit on term insurance premium, you could even save tax on death benefit or maturity amount. Under Section 10 (10D), there is no upper limit for the death benefit received by beneficiaries. However, if the payable premium in any of your policy years exceeds 20% of the sum assured, the maturity amount becomes taxable. Generally, this is not bound to happen because sum assured is usually much higher than the premium.
What about the bonus received from the policy? Bonus received from the policy is also eligible for income tax benefit on term insurance.
What are the exceptions under income tax benefit on term insurance?
- Any amount received by the taxpayer under Section 80DD(3)
- Any amount received via a through a Keyman Insurance Policy
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Get Expert Advice from Your Trusted Life Insurance Partner!
Have questions? Get help and reliable support from experts at Generali Central India Life Insurance.
Explore Knowledge Centre
From insurance basics to wealth-building strategies — everything you need, in one place.
Got Questions? We’ve Got Answers!
Here are answers to some of the questions you might have.
Life insurance is a financial safety net that supports your loved ones in your absence. If something happens to you, it provides them with funds to help cover everyday expenses, repay debts, and achieve future goals. It gives you peace of mind, knowing your family’s financial future is secure— no matter what.
The right plan depends on your needs.
Start by assessing your life stage, financial goals, and the needs of your family. Consider factors like your income, outstanding loans, future expenses and goals (like children’s education, foreign travel, study abroad), and desired coverage amount. We offer a wide range of plans that cover multiple goals and budgets. To get a better idea and make a confident choice consult with a financial advisor or call us on 1800 102 2355.
A good rule of thumb is to aim for coverage that's 10–15 times your annual income. Consider your family’s living expenses, outstanding loans, children’s education, and long-term goals. The right amount ensures your loved ones can maintain their lifestyle and meet future needs— even in your absence.
We would love to help you choose and buy the right policy for your needs. Call our toll-free number 1800 102 2355 or drop us an email at care@generalicentral.com.
Reach out to us in any way that you prefer, and our team of experts will soon get back to you!
Disclaimers
Understand your policy better with key details and insights into our Generali Central Life Insurance.
This Product is not available for online sale. Life Coverage is included in this Product. For detailed information on this plan including risk factors, exclusions, terms and conditions etc., please refer to the product brochure and consult your advisor, or, visit our website before concluding a sale. Tax benefits are as per the Income Tax Act 1961 and are subject to any amendment made thereto from time to time. If you have any request, grievance, complaint or feedback, you may reach out to us at care@generalicentral.com For further details please access the link: www.generalicentrallife.com/customer-service/grievance-redressal-procedure.
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