Life Insurance Policy and Income Tax
2. it is best to buy a simple term policy as it is most cost-effective. stay away from ULIPS, those policies are built for agents not for customers.
3. you can get best rates if you buy online, there is no downside to buying online. e.g. aegon religare iTerm plan.
4. a good thumb rule is to go for a sum assured of about 10 times your annual expenses.
hope this helps. more
1. Amount paid or deposited towards life insurance,
2. contribution to Provident Fund set up by the Government, recognised Provident Fund,
3. contribution by the assessee to an approved superannuation fund,
4. subscription to National Savings Certificates,
5. tuition fees,
6. payment/ repayment for purposes of purchase or construction of a residential house
Please note aggregate amount of deduction shall not exceed one lakh rupees. This deduction is from the gross income not from tax. more