Life Insurance Policy and Income Tax

I currently do not have any life insurance policy for me or family. Can one save on income tax by doing that? How much can be saved? more  

Yes you can save as per 80 (C). You can contact me for further details. more  
1. getting a life insurance policy is a good idea regardless of the income tax savings.
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  
Yes, Tax saving can be made by investment in Life insurance premium, including premium for a unit-linked insurance plan (ULIP). Life Insurance Premium on Life Policy has Maximum Premium eligible limited to 20% of sum assured. Investment may be made in the name of self, spouse & children, paid by you in the relevant previous year only. As per provisions of Section 80C, life insurance premium can be claimed for tax rebate by an individual only where the policy is taken for his own benefit, or his/her spouse, or their child. Therefore, you won’t get any tax benefit on premium paid for life insurance policies of your parents. Premium paid/payable will be considered for deduction and not sum assured. Life insurance premiums paid up to Rs. 1 lakh each year is eligible for tax benefit u/s 80C but the policy should not be surrendered within three years of its inception. Some reference can be seen here: http://www.licindia.in/tax_benefit.htm more  
Section 80C (Some of the major items for deduction under this section are). These payment should have been made during 2012-13.

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  
You can save up to 1 Lac under 80 C by investing in Life Insurance for you and your family more  
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