Does Your Insurance Policy Provide Tax Benefits?


Bangalore: With this Budget’s new rules for life Insurance, it was presumed that mis-selling will take a back seat from now on. But it is not the scene here. Rather mis-selling has become more dangerous for your personal finances, reports The Economic Times.

Till the last financial year, if an unsuitable life insurance policy was mis-sold to a person; the most he would have lost was his capital amount along with the opportunity to invest it in a profitable arena. The least the person could do was to avail the tax benefits under Section 80C and tax free maturity income under Section 10(10D).

But as of now, after the Budget, if a buyer buys a policy carelessly then he will end up buying a policy which won’t offer any tax benefits. Even in case of the policy holder’s death, the money received by his nominee will be taxable, if the holder’s policy does not cover 10 times the annual premium.