Does Your Insurance Policy Provide Tax Benefits?
For a policy buyer who is not aware of the 10x norm, it is recommended to examine the facts or else they may have to face a rude shock while receiving the matured policy amount.
The budget has illuminated the fact that the insurance cover shall not include bonuses and other payments made by the company, to ensure that these companies don’t design products to violate the rules. Only the fundamental sum assured will be taken into account.
The primary problem is that companies don't actively discourage the mis-selling. A delinquent agent easily gets away with a mild rap. In such case, insurers will have to take severe action against mis-selling. If insurers don’t take corrective measures now, in a few years IRDA will be flooded with mis-selling complaints from taxpayers, who have been deprived of tax deduction because of their insurance policies.
