Tax Saving

The tax benefits of these insurance plans usually come in two forms:

1. Tax deductions on premiums: Policyholders can claim deductions on the premiums paid towards the tax-saving insurance plan. The specific deduction limit varies based on the tax laws of the country. In some cases, the premiums paid may be fully or partially deductible from the taxable income, reducing the overall tax liability.

2. Tax-free benefits: The proceeds received from the tax-saving insurance plan, such as the maturity amount or the death benefit, are often tax-free. This means that the policyholder or the nominee/beneficiary does not have to pay taxes on the amount received, providing a significant financial advantage.

Tax-saving insurance plans are commonly offered as long-term policies, such as whole life insurance or endowment plans. They not only provide life insurance coverage but also serve as a means to build savings or investments over time. These plans are particularly beneficial for individuals who want to secure their financial future while simultaneously reducing their tax burden.

Calculate your tax slab /tax-saving