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5 Tax Saving Tata AIA Life Insurance Plans for Young Parents

24-June-2021 |

Life insurance plans are considered one of the most important elements in the portfolio that make the financial plan for young parents. It is because they have increasing responsibilities throughout their life concerning the future of their children. It is also important to secure their lives to meet any unexpected scenarios leading to a financial crisis.

Therefore, including financial instruments in the portfolio requires proper planning of the steady flow of income. And, tax* saving is a major objective for that reason. We at Tata AIA consider the importance of life cover, savings and investment for the benefit of your future and provide various customized solutions that are effective tax*-saving tools as well. Here is a detailed article about it.



Tax* Benefit in Life Insurance Plans

The premium amount spent towards purchasing life insurance plans qualifies for tax* deduction to reduce the net taxable income under Section 80C and tax exemption on the sum received under Section 10(10D) of the Income Tax Act, 1961. In addition, you can receive the term life insurance tax saving benefit by opting for the health riders# and receive a deduction on the taxable income under Section 80D.

Young parents have to allocate sufficient money reserves to plan for their children's education, marriage, etc., And if the young parents wish to explore the world and engage in a new venture, or go on a sabbatical leave to pursue higher education, it is important to have the right financial support ensured without compromising the current financial expenses. Moreover, it is also vital to have a life cover to offer financial support to their children in their unexpected demise.

When you opt for life insurance plans, you can secure life, plan for the future and save on tax*. Moreover, it will help you increase the extent of investment and its benefit in the long run. Here is a detail of five Tata AIA life insurance solutions that are good solutions with a tax*-saving benefit.

  1. Tata AIA Life Insurance InstaProtect Solution+ is a Tata AIA term plan that provides comprehensive coverage, including life cover and health protection benefits with flexible features.

    • The term plan offers the Criticare Plus Benefit to make the insured amount payable for the medical expenses incurred towards diagnosing a critical illness.

    • The Hospicare benefit provides financial assistance to accommodate hospitalisation expenses, including ICU admission costs.

    • It can also cover death or total and permanent disability due to an accident.

    • You can also choose the return of premium with term plan option to receive a refund of the premium amount paid during the policy term if you survive the policy term.

    • You can choose the premium payment term and decide on the policy term.

  2. Therefore, it is a term life insurance which helps to save tax* while ensuring maximum financial protection for your children.

  3. Tata AIA Life Insurance Sampoorna Raksha Supreme (UIN:110N160V02) is another term life insurance with tax benefits that provide a life cover with various advantages as follows:

    • Receive payouts as a lump sum or regular income up to 120 months or as a combination of both.

    • Increase the cover at important milestones based on financial commitments.

    • Choose the comprehensive protection rider# options for covering accidental death, total and permanent disability, terminal illness, critical illness,

    • Choose comprehensive health rider# options to cover major illnesses, injuries, including hospitalisation and medical expenses.

    • Connect with a doctor instantly online for expert medical advice.

    Also, the term insurance plan which helps to save tax* is available at a lower rate for women policy seekers.

  4. Tata AIA Life Insurance Fortune Pro (UIN- 110L112V04) is a Unit Linked Insurance Plan(ULIP) that provides life cover and tax*-saving benefits while also helping you to pick securities for market-linked returns to grow your wealth. Investments in financial markets are necessary to enhance your financial position in the future to accommodate increasing expenses that relate to your children's education or other expenses. The plan offers the following features:

    • You can invest in a range of funds, including equity funds for high-risk investors, debt funds for low-risk investors, and hybrid funds for medium-risk investors.

    • You can also switch between the funds in extreme economic downturns to protect your investment.

    • You can choose the waiver of premium rider# to waive future premium payments in case of total and permanent disability due to an accident.

  5. Tata AIA Life Insurance Guaranteed Return Insurance Plan (UIN: 110N152V09) is a savings insurance plan that offers life coverage and, additionally, guaranteed1 returns on maturity while saving on tax. As young parents, you need to save funds to manage your children's future expenses. You should be able to fund their education in a foreign university, help them explore their area of research or even start a new business.

    • As the returns are guaranteed1 on maturity, you can precisely plan for your future expenses.

    • Choose between the endowment, regular and whole life income payout options.

    • You can pay the premium as a lump sum or for a limited term monthly, quarterly, semi-annually or annually.

  6. Tata AIA Life Insurance Smart Annuity Plan (UIN-110N150V05) - Well, retirement is far ahead for young parents. However, considering the increasing financial commitments throughout life, it is important to find financial resources that help them lead a peaceful retirement life. At Tata AIA, we provide the Smart Annuity plan with the following features:
     
    • Option to choose the annuity option between the immediate and the deferred annuity.

    • Flexible payout modes based on personal financial needs, whether lump sum or regular income.

    • Guaranteed1 lifetime income to secure future financial expenses.

    The Income Tax Act, 1961 provides tax deduction under Section 80CCC for pension plans issued by life insurance providers. Also, the sum received on maturity to purchase the annuity qualifies for tax exemption up to one-third of the total payout subject to applicable conditions.



Conclusion

Life insurance plans have enhanced the benefits offered to their policyholders to include comprehensive coverage while saving on tax. As a result, term insurance tax saving in India is predominant considering its affordability and higher sum assured. On the other hand, other comprehensive life insurance solutions provide savings and investment benefits that provide tax advantages too. Therefore, choose life insurance plans with tax benefits to secure your family in your absence, save for your future commitments and invest in growing your wealth!

L&C/Advt/2022/Mar/0692

 

 

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Need more information?

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TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

Looking to get a new plan? 

Connect with us now

+91

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

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Understanding Deductions Under 80C
Read More
How to Maximise Returns with Tax-Saving Instruments
Read More
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Read More
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Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA), Tata AIA Life Insurance is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

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Disclaimer
  • +Tata AIA Life Insurance InstaProtect comprises Tata AIA Life Insurance Sampoorna Raksha Supreme (Non-Linked, Non-Participating, Individual Life Insurance Plan) (UIN: 110N160V02) - Life Option (in case Return of Premium is No) or Life Plus Option (in case of Return of Premium is Yes), Tata AIA Life Insurance Non-Linked Comprehensive Protection Rider (NLCPR) (UIN: 110B033V02) - A Non-linked, Non-participating, Individual Health Rider; Tata AIA Life Insurance Non-Linked Comprehensive Health Rider (NLCPR) (UIN: 110B031V02) - A Non-linked, Non-participating, Individual Health Rider.

  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.

  • #Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch

  • 1Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry

  • IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

  • THE LINKED INSURANCE PRODUCT DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICY HOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF THE FIFTH YEAR.

  • Past performance is not indicative of future performance.

  • All investments made by the Company are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market.

  • Please make your own independent decision after consulting your financial or other professional advisor.

Need more information?

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TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.

Looking to get a new plan? 

Connect with us now

+91

TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in.