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How to Save Tax with Tata AIA Life Insurance Online Plans?

26-April-2022 |

Life insurance plans provide financial security to your loved ones in case of your unexpected death. However, the benefits of such plans have increased in varied dimensions with the introduction of comprehensive solutions. Comprehensive life insurance plans provide life cover, guaranteed1 returns on maturity, and even market-linked returns. And, most importantly, these plans help you save on tax* as well! We at Tata AIA offer life insurance online plans to help you purchase and manage your investments conveniently and cost-efficiently while also saving on taxes. So let us get started.

Tata AIA Life Insurance Online Plans

We have established facilities for easy access to our life insurance plans with technological advancement. As a result, you can navigate our official website to read and understand the policy features and benefits.

You can purchase some of our life insurance plans online, such as the Tata AIA Life insurance Sampoorna Raksha Supreme term plan (UIN: 110N160V02), Tata AIA life insurance fortune Guarantee Plus savings insurance plan (UIN: 110N158V03), Tata AIA life Insurance Smart Income Plus guaranteed income plan (UIN: 110N148V03), Tata AIA life Insurance Wealth Pro ULIP(UIN: 110L111V03), Tata AIA Life Insurance Smart Annuity Plan (UIN: 110N150V05) for retirement planning, etc. In addition, we at Tata AIA provide online premium calculators that help you estimate the premium based on your preferences, such as the policy term and sum assured. Therefore, you can try different combinations to ascertain the right plan and the best premium amount that is affordable based on your steady income flow.

Let us further understand how to save on taxes with our online life insurance plans.

How to Save Taxes With Online Tata AIA Life Insurance Plans?

According to the Income Tax Act, 1961, the premium amount you pay for the online life insurance policy annually qualifies for tax deduction under Section 80C. Also, the proceeds from the policy, such as the death benefit, get tax exempted under Section 10(10D). And, if you have availed of certain critical illness riders# as part of the online life insurance, the premium qualifies for tax* deduction under Section 80D as well.

Let us elaborate on these tax provisions and their conditions for our online term policy to understand better.

Tax deduction

Section 80C

Section 80C provides a tax deduction from the total gross income for your investments made in financial products such as life insurance, fixed deposits, Equity Linked Savings Scheme, Provident Fund, etc. Therefore, the annual premium you pay for the term insurance will apply to the tax deduction. However, the maximum limit for such possible deductions for all the investments under Section 80C is ₹1,50,000.

You can use the online premium calculator and assure these calculations to make it applicable for the tax benefit with our Tata AIA term insurance plan.

However, due to some reason, if you have surrendered or terminated your term policy within two years, the premium will not qualify for the term life insurance tax benefit.

Section 80D

Section 80D provides tax deduction over and above the deduction under Section 80C if you have availed health riders# such as the critical illness rider# with our term plan. For instance, if your family has a medical history of cancer, the critical illness rider# will greatly benefit you. It will help you with the right financial assistance to manage the hospitalisation and medical expenses associated with the treatment when you get diagnosed with such a critical illness. You can receive the amount as a lump sum or a regular income for a defined period.

In such cases, you can avail of a tax deduction of up to ₹25,000. And, if the term plan is for your parents, you can get an additional tax deduction of ₹25,000. The upper limit for parents gets increased to ₹50,000 if they are senior citizens.

Tax exemption

According to the Income Tax Act, 1961, the lump sum death benefit received by your family in case of your unexpected demise will get tax exempted completely under Section 10(10D). It is applicable on the benefit of surrendering the policy, any bonuses2 received, and the return of premium on maturity if opted.

However, it is important to note that this tax exemption is available for the term policy that accommodates the conditions on annual premium as stated for the tax deductions. Also, the exemption is not applicable if you have the benefit of the Keyman Insurance Policy and received an amount under Section 80DD or Section 80DDA.

Conclusion

Life insurance plans enhance your family's financial protection in case of your unexpected demise. We at Tata AIA provide a range of policies online that help you invest comfortably based on your income and financial commitments. While you get the death benefit Guranteed1 for your family, you can save a lot on taxes on investing with our term insurance plans. It is important to make sure your investment matches the eligibility criteria for saving on taxes. Make use of our online premium calculator to estimate the annual premium based on the required policy term and sum assured for maximum protection and life insurance tax* benefits!

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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!

View all posts by Tata AIA Life Insurance

Disclaimer
  • 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.

  • #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

  • * 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.

  • 2These bonuses are not guaranteed in nature. The Company may declare Cash Bonus rate annually in advance. The Cash Bonuses if declared, will be applicable provided all due premiums have been paid.

  • 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.