Payment towards Life Insurance premium not only protects one’s family but is also a great tool for tax planning & savings.
Life Insurance premium is money an individual pays for purchasing an insurance policy. In exchange for premium paid, the life insurance company provides a lump-sum payment. This lump-sum payment is the ‘sum assured’ of an amount that you’re insured for and which is guaranteed to be given to your family or beneficiaries in case of your death.
The basic intent of allowing tax benefits for life insurance policy premiums is to ensure that people invest a part of their savings in purchasing a life insurance policy to secure their own lives/ lives of eligible persons.
Full utilization of the deduction under section 80C (maximum amount allowed Rs 1.5L) would bring down your taxes significantly.
Who can claim 80C deduction?