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In whose name Insurance should be bought in order to avail income tax benefits.

By   /   August 23, 2013  /   No Comments

In whose name Insurance should be taken

Income Tax Benefits of life insurance premium is allowed on premium paid on life of:

1. Self

2. Spouse

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).






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About the author

Hi My name is Hari Om Tripathi. I am an engineer by chance & a Personal Financial Planner by choice. Currently residing in Kanpur & writing full time for Financial Kundali. In case you have any query about Personal Financial Planning such a buying a MF or ULIP, going for a life insurance plan or a term plan, to surrender your policy or not or any other questions related to your Personal Financial Planning, write to me at financialkundali@gmail.com

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