Tax Benefits of Term Insurance Plans

Key Tax Benefits of Term Insurance

Let’s break down how a term insurance plan can help you save on taxes:

Section 80C: Premiums Paid Are Tax-Deductible

One of the biggest tax-saving advantages of a term plan comes under Section 80C of the Income Tax Act, 1961.

Deduction Limit: You can claim a deduction of up to ₹1.5 lakh per financial year for the premiums paid towards your term insurance plan.

Condition: The annual premium should not exceed 10% of the sum assured for policies issued after April 1, 2012. If it does, the deduction will be allowed only up to 10% of the sum assured.

This makes term insurance one of the most cost-effective instruments to reduce your taxable income while ensuring life protection.

Section 10(10D): Death Benefit Is Tax-Free

The sum assured your nominee receives in case of your unfortunate demise is completely tax-free under Section 10(10D) of the Income Tax Act.

No Cap on Exemption: There is no upper limit on the amount that can be received tax-free.

This ensures that your family receives the full amount without any deductions, offering complete financial support in tough times.

Tax Benefits for Critical Illness Riders

Many term plans come with additional riders like critical illness, accidental death, or disability benefit. Premiums paid for critical illness riders may qualify for tax benefits under Section 80D (commonly used for health insurance).

Deduction Limit under 80D: Up to ₹25,000 for individuals below 60 years, and ₹50,000 for senior citizens.

Note: This applies only to the portion of the premium allocated towards the critical illness rider, not the base term insurance plan.

Term Insurance + Tax Saving = A Smart Financial Move

Think of term insurance not just as a safety net but also as a tax-saving tool. Here’s how it adds value:

• Ensures long-term financial security for your family.
• Offers significant tax savings each year.
• Simple, transparent, and low-cost — you get high coverage at a minimal premium.
• Can be combined with riders for enhanced protection and additional tax benefits.

Why Buy Through Jio Insurance Broking?

Choosing the right term insurance plan is just as important as deciding to get one. Here’s where Jio Insurance Broking comes in:

• Expert Advisory: Personalized assistance to choose the best plan tailored to your financial needs.
• Wide Range of Insurers: Compare multiple plans across top insurance providers in one place.
• Zero Commission Bias: Recommendations are customer-first, not driven by incentives.
• Quick Documentation: Simple, online process with complete transparency.

With Jio Insurance Broking, you don’t just buy a policy — you get peace of mind, financial literacy, and long-term value.

If you’ve been putting off buying a term insurance plan, consider the twin benefits it offers — protection and tax savings. It’s one of the most responsible financial decisions you can make for your family. Plus, the sooner you buy, the lower your premiums will be.

So don’t wait until the tax season stress hits. Talk to the experts at Jio Insurance Broking today and take a step toward a safer, smarter financial future.

Remember: Life is unpredictable, but your financial planning doesn't have to be.