Life Insurance plays a critical role in tax*-planning. By investing in a life insurance plan, you can claim deductions from your taxable income as per the provisions of the Income Tax Act, 1961. This means that the insurance premiums you pay, help in reducing your tax liabilities as well as ensure your family gets 100% payout in case of eventuality
Important Sections
80C & 10(10D)
10(10D)
80C, 80D & 10(10D)
80C
If you are planning to invest in a life insurance plan, be it a term insurance plan or a savings insurance plan one of the benefits to look out for would be its tax* benefits subject to conditions under Section 80C.
80C: One of the very commonly known sections amongst taxpayers, Section 80C allows you to reduce your taxable income by ₹1.5 lakhs every year.
With life insurance plans, you can avail tax deductions of up to ₹ 46,800 which is calculated at the highest tax slab rate of 31.20% (including cess, excluding surcharge), towards premiums paid subject to conditions under Section 80C of the Income Tax Act, 1961Below are the plans where we offer tax* benefits under Section 80C
Unit linked insurance plans
IN ULIPS, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
Guaranteed^ Returns Plans
If you are planning to invest in a life insurance plan, be it a term insurance plan or a savings insurance plan one of the benefits to look out for would be its tax* benefits.
80C: One of the very commonly known sections amongst taxpayers, Section 80C allows you to reduce your taxable income by ₹1.5 lakhs every year.
With life insurance plans, you can avail tax deductions of up to ₹ 46,800 which is calculated at the highest tax slab rate of 31.20% (including cess, excluding surcharge), towards premiums paid subject to conditions under Section 80C of the Income Tax Act, 1961
10(10D): For the claim amount, Section 10(10D) plays a very important role.
The proceeds received under the policy are exempt from taxes subject to conditions u/s 10(10D).Below are the plans where we offer tax* benefits under Sections 80C & 10(10D)
Unit linked insurance plans
IN ULIPS, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
Guaranteed^ Returns Plans
One invests in a savings plan with the goal of receiving a guaranteed fixed income after some years, which they can use to fulfil their goals. As someone who is looking to invest in these guaranteed income plans, you would also want the proceeds to be exempt from taxes so that you and your family can make the most of them.
This is where Section 10(10D) plays a very important role.
Under this Section 10(10D), the returns received under the policy are exempt from taxes subject to the conditions specified therein.
For aggregate premiums above 5 lakh p.a., you need to act before 31st March 2023. Policies issued on or after April 01, 2023 where aggregate premium in respect of Non- Unit linked life insurance policies are more than ₹ 5 lakh p.a. is not exempt u/s 10(10D). However, the death benefit will continue to be 100% tax free.
To avail the 10(10D) benefit, act now. Act fast.Below are the plans where we offer tax* benefits under Section 10(10D)
Unit linked insurance plans
IN ULIPS, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
Guaranteed^ Returns Plans
Some of the life insurance plans can offer a combination of tax* benefits especially plans that have both a life cover plus a health cover component.
80C: One of the very commonly known sections amongst taxpayers, Section 80C allows you to reduce your taxable income by ₹1.5 lakhs every year.
With life insurance plans, you can avail tax deductions of up to ₹ 46,800 which is calculated at the highest tax slab rate of 31.20% (including cess, excluding surcharge), towards premiums paid subject to conditions under Section 80C of the Income Tax Act, 1961
80D: You can reduce your taxable income by ₹25000 under Section 80D on premiums paid towards health insurance or any health related benefits under a life insurance plan. Under health insurance this benefit can be availed on insurance for self, spouse and dependent children and parents.
With life insurance plans, you can avail tax deductions of up to ₹ 7,800 which is calculated at the highest tax slab rate of 31.20% (including cess, excluding surcharge), towards premiums paid subject to conditions under Section 80D of the Income Tax Act, 1961
Some term insurance plans come with add on benefits or riders like Critical illness insurance that give sizable payouts in case of life threatening illnesses like cancer, heart disease etc.
10(10D): For the claim amount, Section 10(10D) plays a very important role.
The proceeds received under the policy are exempt from taxes subject to conditions u/s 10(10D).
Below are the plans where we offer tax* benefits under Sections 80C, 80D & 10(10D)
If you are planning to invest in a life insurance plan, be it a term insurance plan or a savings insurance plan one of the benefits to look out for would be its tax* benefits subject to conditions under Section 80C.
80C: One of the very commonly known sections amongst taxpayers, Section 80C allows you to reduce your taxable income by ₹1.5 lakhs every year.
With life insurance plans, you can avail tax deductions of up to ₹ 46,800 which is calculated at the highest tax slab rate of 31.20% (including cess, excluding surcharge), towards premiums paid subject to conditions under Section 80C of the Income Tax Act, 1961Below are the plans where we offer tax* benefits under Section 80C
Unit linked insurance plans
IN ULIPS, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
Guaranteed^ Returns Plans
If you are planning to invest in a life insurance plan, be it a term insurance plan or a savings insurance plan one of the benefits to look out for would be its tax* benefits.
80C: One of the very commonly known sections amongst taxpayers, Section 80C allows you to reduce your taxable income by ₹1.5 lakhs every year.
With life insurance plans, you can avail tax deductions of up to ₹ 46,800 which is calculated at the highest tax slab rate of 31.20% (including cess, excluding surcharge), towards premiums paid subject to conditions under Section 80C of the Income Tax Act, 1961
10(10D): For the claim amount, Section 10(10D) plays a very important role.
The proceeds received under the policy are exempt from taxes subject to conditions u/s 10(10D).Below are the plans where we offer tax* benefits under Sections 80C & 10(10D)
Unit linked insurance plans
IN ULIPS, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
Guaranteed^ Returns Plans
Tools & Calculators
Frequently asked questions
Will the new taxation provisions introduced in the Budget 2023, impact my returns from the savings policies?
No, the new taxation provisions will not impact your returns received from non-linked savings policies which are issued up to March 31, 2023.
Any policy which is issued beyond this date will be subject to the new taxation provisions.
Which product types will be considered under the new taxation provisions u/s 10(10D)?
Non unit-linked products including term insurance products with return on premium feature and endownment products will be subject to the new taxation provisions u/s 10(10D) post 31st March, 2023.
What is the premium limit from which this provision will be applicable?
Returns will be taxable if non unit linked policy is issued on or after April 01, 2023, if aggregate premium is more than ₹ 5 lakh p.a
If my annual premium is more than 5 L and I have purchased the policy after 31st March 2023, will the death benefit to my family also be taxed?
Death benefit amount is exempt from taxes irrespective of the premium amount or the policy issuance date
What if the plan I purchase does not offer the Section 10(10D) benefit?
If your insurance policy does not offer tax exemption under the Section 10(10D), then the maturity amount will be subjected to TDS (tax deducted at source).
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Disclaimers
ICICI Pru iProtect Smart UIN 105N151V09.
ICICI Pru Heart/Cancer Protect. 105N154V03
ICICI Pru Signature. 105L177V06
SmartKid with ICICI Pru Smart Life. 105L145V08.
ICICI Pru Guaranteed Income For Tomorrow. 105N182V08
ICICI Pru Guaranteed Income For Tomorrow (Long-term). 105N185V13
ICICI Pru iProtect Return of Premium. 105N186V01
ADVT: W/II/1223/2023-24
^Guaranteed benefits are payable subject to all due premiums being paid and the policy being in force on the date of maturity.
Term plan: *Tax Benefits of ₹46,800 under Section 80C & ₹7,800 under Section 80D is calculated at the highest tax slab of 31.20% (including cess excluding surcharge) on life insurance premium under Section 80C of ₹1,50,000/- and health premium under Section 80D of ₹25,000/-. Tax benefits are subject to conditions under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for more details”
Guaranteed Plan & ULIP: *Tax benefits of ₹46,800 under Section 80C is calculated at highest tax slab rate of 31.20% (including cess excluding surcharge) on life insurance premium under Section 80C of ₹1,50,000/-. Tax benefits under the policy are subject to conditions under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act,1961. Goods and Services tax and Cesses, if any will be charged extra as per prevailing rates.The Tax Free income is subject to conditions specified under section 10(10D) and other applicable provisions of the Income Tax Act,1961. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details
Health Plan: *Tax benefit of ₹7,800 is calculated at highest tax slab rate of 31.2% (including Cess excluding surcharge) on health premium under Section 80D of ₹25,000. Tax benefits under the policy are subject to conditions under Sections 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details.
© ICICI Prudential Life Insurance Co. Ltd. All rights reserved. Registered with Insurance Regulatory & Development Authority of India (IRDAI) as Life Insurance Company. Regn. No. 105. CIN: L66010MH2000PLC127837. Reg. Off.: ICICI PruLife Towers, 1089 Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025. Tel.: 40391600. Customer helpline number – 1800-2660. Timings – 10:00 A.M. to 7:00 P.M., Monday to Saturday (except national holidays). Member of the Life Insurance Council. For more details on the risk factors, term and conditions please read the product brochure carefully before concluding the sale. Trade Logo displayed above belongs to ICICI Bank Ltd & Prudential IP services Ltd and used by ICICI Prudential Life Insurance Company Ltd under license.
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