Life Insurance Tax Benefits at Life

Life Insurance Tax Benefits. Tax benefits on the life insurance payout. Life insurance is the first thing that comes to one’s mind when the word ‘insurance’ is mentioned.

The income tax benefit of a life insurance policy depends on different factors, including its type and the premium you pay for it. Tax benefits on your monetary investments; Whole life insurance is a substantial way to build tax free wealth.

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Here, you can claim deductions of up to inr 1,50,000 per year for the premiums you pay towards the upkeep of your life insurance policy. Please note that in a variable life insurance policy, cash value growth is not guaranteed. By investing in a life insurance policy, you can avail the following benefits under the income tax act, 1961: Any earnings accumulated in your insurance policy’s cash value grow free from taxes.