How to claim tax benefit on term insurance plans?

Technically speaking when somebody is looking for financial security of their dependent , life insurance plans are the most effective solution for it.But there are different alternatives which are available today in the life insurance space out of which term insurance plans are most effective, efficient and the cheapest way to handle the issues relating to financial security.

How to claim tax benefit on term insurance plans-My Insurance Bazaar.jpg

Every people who is looking at financial well being for himself and his/her family the first step towards it is to planning for investments in a disciplined manner which means you need to follow a definite pattern of segregating your regular income into savings and spending but the challenge is what happens when the regular flow of income would stop. May due to death and disability of the bread earner and this is where a term insurance plays a vital role. Buying right term plan refers to buying a policy which offers the right amount of insurance cover at an optimum price. In fact there are many smart ways by which you can optimize the cost of term insurance plans. One of the common method is to Buy Best Life Insurance Policy India. In fact insurers offer two different plans two different types of policyholders -offline and online. Online policyholders are always deemed to have better access to knowledge and have better access to health care so the insurer always charges a low cost of premium to them.

 

But other than the benefits mentioned above people generally don’t talk a lot of the tax benefits that one can get by investing into term insurance plan.Though the benefits quite similar what other forms of life insurance plans offer but the benefits are bit different in case of term insurance plan.Like any other life insurance plan one can also claim for tax benefits on term insurance plans on the total premium that you pay towards buying a new policy or renewing an old one.The premium deposited towards an term policy can be claimed as tax benefits under Section 80C of the income tax act.Potentially the maximum amount of benefits that one can claim under this particular Section is Rs.1.5 lacs.For somebody to claim for tax benefit in the current fiscal year the premium should be paid in that particular year only. Compare term insurance plans online and You need to keep your policy premium pay receipt ready to claim this tax benefit.One should remember for claim tax benefits the term policy has to be necessarily taken in the tax payer’s name. You can’t pay premium for your friend’s policy and take a tax benefit.

So potentially clubbed with tax benefits and features associated with a term plan makes it a worthwhile investment to make.

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