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

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!

L&C/Advt/2022/Apr/0858