Ch. 9: Tax Benefits - Section 10(10D) + Section 10(10A)
-
Key takeaways from this chapter
- What are Life Insurance Tax Benefits?
- What is Section 10(10D)?
- Which Life Insurance Policies qualify for Section 10(10D) Tax Benefits?
- Exemption clauses under Section 10(10D)
- Conditions under Section 10(10D) for Maturity Returns
- Can you surrender a life insurance policy and still receive tax benefits?
- What is Section 10(10A)?
- Which Life Insurance Policy qualifies for Section 10(10A) Tax Benefits?
What are Life Insurance Tax Benefits?
What is Section 10(10D)?
Which Life Insurance Policies qualify for Section 10(10D) Tax Benefits?
Exemption clauses under Section 10(10D)
Conditions under Section 10(10D) for Maturity Returns
Can you surrender a life insurance policy and still receive tax benefits?
Type of Policy | Condition |
---|---|
Single-Premium Life Insurance Policy | You hold the policy for at least two years |
Unit Linked Insurance Plan (ULIP) | You surrender the policy after five years from the date of purchase |
Endowment plan or a Money-back plan (Traditional policies) | You pay premiums regularly for initial two years |
Date of Issue | Condition |
---|---|
Before 31st March, 2003 | No condition |
Between 1st April, 2003 to 31st March, 2012 | The sum assured must be at least five times the annual premium amount |
On or After 1st April, 2012 | The sum assured must be at least 10 times the annual premium amount |
On or After 1st April, 2013 | The sum assured must be at least 6.67 times the annual premium amount, or
You are a person with disabilities or suffer from any ailment as per Section 80U of the Income Tax Act. |
What is Section 10(10A)?
Which Life Insurance Policy qualifies for Section 10(10A) Tax Benefits?
Get Guaranteed Returns After a Month^
Unlock the Power of Smart Investment!
-
Disclaimer
ABSLI Salaried Term Plan (UIN:109N141V01) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 2 (Life Cover with ROP) this product shall be a non-linked non-participating individual savings life insurance plan.
¹ LI Age 21, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: ₹ 1 Cr., PT: 10 years, Premium paying term: 10 years, Annual Premium: ₹ 5900/- ( which is ₹ 491.66/month) Premium exclusive of GST. On death, 1 Cr SA is paid and the policy terminates.
ADV/12/22-23/2552