Beware of Insurance/Assured Premium and sum assured when availing for 80 C deduction

[Suno]

Consider you have taken an Insurance/Assured plan with following criteria

Basic Sum Assured: Rs 5,00,000 /-
Yearly premium: Rs 60,000 /-

Your company will only consider 10% of Sum Assured for Income tax declaration.
So even though you paid Rs 60,000 /- you will now get benefit of only Rs 50,000 /- for IT declaration.

 

[TechnoFinoTechnoFino is verified member.]

true

 

[shubhamaggarwal]

Consider you have taken an Insurance/Assured plan with following criteria

Basic Sum Assured: Rs 5,00,000 /-
Yearly premium: Rs 60,000 /-

Your company will only consider 10% of Sum Assured for Income tax declaration.
So even though you paid Rs 60,000 /- you will now get benefit of only Rs 50,000 /- for IT declaration.

Ohkay, any reference to read more on this topic?

 

[Suno]

Ohkay, any reference to read more on this topic?

Tax benefit: Is your single premium life insurance policy eligible for tax benefits?

Until the ratio between the premium and the sum assured is met, you may not be able to avail tax benefits on your policy. The tax benefit on the premium paid on life insurance policy is available under the old tax regime for current financial year.

economictimes.indiatimes.com

 

[bhavyegoelbhavyegoel is verified member.]

Consider you have taken an Insurance/Assured plan with following criteria

Basic Sum Assured: Rs 5,00,000 /-
Yearly premium: Rs 60,000 /-

Your company will only consider 10% of Sum Assured for Income tax declaration.
So even though you paid Rs 60,000 /- you will now get benefit of only Rs 50,000 /- for IT declaration.

Are you talking about limited pay life insurance plan?

 

[Suno]

Are you talking about limited pay life insurance plan?

Almost all insurance plans and Savings assured plan (like Kotak Savings Assured Plan)

 

[teodranik]

Avoid insurance cum investment plans altogether. High commission low coverage and lower returns vis a vis other investment options