Tax Benefits of Term Insurance Plan
When you buy a term insurance plan there are several tax benefits that can be availed. These benefits help you save money on the tax outgo and also ensure your loved one’s financial future. You can avail benefits under section 80C and section 10 (10D).
Apart from the tax benefits, term insurance secures your family for the long haul along with helping you enjoy the benefits of considerably lower affordable premiums.
Not only do you get annual tax benefits but the eventual death benefit will also be non-taxable subject to conditions under Income Tax Act. This works as a major security for your family and gives your peace of mind.
Term Insurance Variants
Pure Life Risk Cover: The Lump sum assured at policy inception will be paid to the beneficiary, immediately on the death of the Life Insured. In case you have opted for additional riders like critical illness, then the sum assured shall be reduced to the extent of the claim paid out on account of critical illness benefit.
Monthly Income Scheme: It’s a very good option to provide monthly income security to the beneficiary after the death of the policyholder. A fixed level monthly income for payout duration, as chosen by you at policy inception will be paid to the beneficiary after the date of death of the Life Insured. The monthly income will be payable each month on the anniversary date, starting from the next monthly anniversary post the date of death of the Life Insured. The Sum Assured under the option is derived basis of the monthly income and payout duration is chosen by You based on applicable income factors.
Increasing Monthly Income Scheme: Increasing monthly income for a payout as chosen by you at policy inception will be paid to the beneficiary on the death of the Life Insured. The first monthly income shall be equal to that chosen by you and thereafter income will increase every year by a certain percentage as defined in the policy terms & conditions. The monthly income is paid every month on the policy anniversary date, starting from the next monthly anniversary post the date of death of the Life Insured. The Sum Assured is derived basis the monthly income and the payout duration chosen by you at policy creation based on applicable income factors.