Tax Benefits
The primary reason why most people take up term insurance is the lucrative tax benefits tailing it. Under Section 80C of the Income Tax Act, the premium paid on term plan gets an exemption from tax. Now, the maximum amount of tax exemption one can avail is INR 1.5 lac. This is a huge exemption and will help you in keeping your finances on track. What’s more amazing is that the tax benefit received by your nominee is also tax-free. Ao, all in all, it is a great affair.
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The primary reason why most people take up term insurance is the lucrative tax benefits tailing it. Under Section 80C of the Income Tax Act, the premium paid on term plan gets an exemption from tax. Now, the maximum amount of tax exemption one can avail is INR 1.5 lac. This is a huge exemption and will help you in keeping your finances on track. What’s more amazing is that the tax benefit received by your nominee is also tax-free. Ao, all in all, it is a great affair.