What Are The Tax Benefits On Insurance Policies?
3. Single Premium Policies
A single premium insurance plan is one in which the policy premium is paid only once during the term of the plan. These plans provide a life cover on payment of a onetime lump sum premium amount.
Single premium plans entitle investors to a tax deduction of up to 
1lakh on premiums paid under Section 80C and also tax free death or maturity benefits under Section 10 (10)D. Also in case of single premium policies, where the premium paid exceeds 10 percent of the sum assured, the maturity proceeds are taxed in the year of receipt.
4. Keyman insurance policies
Keyman insurance policies, irrespective of the premium as percentage of sum assured, are not eligible for the benefits of tax exemption.
5. Life insurance policy
If the sum assured becomes payable on a life insurance policy in the event of death, the proceeds are exempt from taxation in the hands of the payee.
