Income Tax Benefits of life insurance premium is allowed on premium paid on life of:
3. Children even if they are not dependent on father or mother
However deduction on life insurance paid in the name of once parents will not be allowed under section 80 C.
How much Tax Deduction is allowed on the premium paid
From FY 2013-14, 10% of sum assured will be allowed as tax deduction under section 80 C. For ex. Say your policy sum assured is Rs.5 lakhs, maximum amount you will be allowed to deduct will be 10% of Rs.5 lakh i.e. Rs.50,000 or the acutal premium paid (whichever is less).