Everything You Need to Know About Term Insurance Tax Benefits Under 80 D

Insuring and investing one's money has become crucial in today's time, keeping in mind the rising cost of living. Term insurance policy has grown popular amongst people looking for financial security for themselves and their loved ones. One significant advantage of investing in a term insurance policy is that people can avail themselves of the term insurance tax benefits. Term insurance provides a lump sum amount of money, also known as death benefits, to the policyholder's family, in case of an unforeseen and unfortunate mishap such as the policyholder's death. Apart from financially securing the policyholder and his family, the term insurance policy provides various other benefits, such as the tax benefits on the premiums paid by the policyholder for the term insurance policy.

Let us briefly understand what you should know about the term insurance tax benefits.

Here's Everything You Need to Know About Term Insurance Tax Benefits

Term insurance policy offers tax benefits under various sections of the Income Tax Act, 1961. Here is a conclusive article telling you everything about the significant features of the term insurance tax benefits.

Term Insurance Tax Benefits Under Section 80D of Income Tax Act, 1961

Term insurance tax benefits under section 80D of the Income Tax Act, 1961 allow tax benefits on health insurance premiums. An investor can claim the term insurance tax benefits if he has chosen health riders such as critical illness, surgeries, etc.

The policyholder can claim the term insurance tax benefits deductions under Section 80C of the Income Tax Act, 1961, when filing for income tax returns annually. Moreover, the policyholder can further claim tax benefits under health insurance riders such as critical illness, surgeries and various other health insurance rider benefits.

There are a few conditions to keep in mind when a policyholder claims term insurance tax benefits. They are as follows.

• If the policyholder claiming the term insurance tax benefits is under the age of 60, he can claim the tax benefits for up to Rs. 25,000.
• If the policyholder claiming the term insurance tax benefits is above the age of 60, he can claim the tax benefits for up to Rs. 50,000.

Some of the term insurance tax benefits are conclusively discussed below Term insurance tax benefits.

As term insurance provides tax exempted premium benefits, it is one of the ideal investment options available to policyholders who are primarily aiming to secure their family and save taxes simultaneously financially. Let us see a few more term insurance tax benefits, as discussed below.

1. Tax Benefits on Premiums of the Policy

The premiums paid by the policyholder are eligible for tax benefits. As a result, this is one of the crucial benefits of term insurance which encourages people to invest in term life insurance policies.

2. Financially Securing the Policyholder and his Family

The term insurance policies provide the dual benefits of financially securing the policyholder and his family and simultaneously providing term insurance tax benefits.

Wrapping Up!

Term insurance tax benefits have become one of the crucial advantages of why people invest in a term life insurance policy, apart from financially securing the policyholder and his loved ones.

With Bharti AXA, you can financially secure yourself and your loved ones and benefit from term insurance tax benefits. Moreover, with us, you can be relaxed and take care of your family members' financial requirements and goals without any hassle. You can visit our official website or get in touch with us for more information on term insurance tax benefits of Section 80C of Income Tax Act, 1961 and health insurance tax benefits.