Life insurance is such a contract between an insurance policy holder and an insurer or assurer company, where the insurer promises to pay a designated beneficiary or a sum of money upon the death of an insured person. According to the mode of the contract, other events such as terminal illness or critical illness can also trigger payment. Overall in this Contract the insured persons get benefits before the death and after the death. However you may get benefits from many way such as Life Insurance Tax Benefit
Life Insurance Premium Tax Benefit: Section 80C of Income Tax
Any sum paid by an individual to keep in force an insurance on the life of assesse or spouse or any child (child may be dependent/independent, minor/major, or married/unmarried). For an HUF, it may be on the life of any member of HUF
(i) The premium payable on an insurance policy issued before 1.4.2012 up to 20% of the actual sum assured.
(ii) The premium payable on an insurance policy issued on or after 1.4.2012 up to 10% of the actual sum assured.
(iii) The premium payable on an insurance policy issued on or after 01.04.2013. for life insurance of any person, who is
(a) person with disability or a person with severe disability as referred in Section 80U, or
(b) Suffering from disease or aliment as specified in the rules made u/s SODDB, up to 15% of the actual sum assured.
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