Paragraph match score 80.3%
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5 Reasons to Invest in a Life Insurance Policy
Maturity proceeds or death benefits received from a life insurance policy are tax-free under Section 10(10D), provided: The premium paid does not exceed the prescribed percentage of the sum assured.
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Tax Benefits on Different Types of Life Insurance Policies in India
Section 10(10D): Under Section 10(10D) of The Income Tax Act, 1961, proceeds received by the policyholder or nominee of an insurance policy, including sum assured, surrender values, and bonuses, are exempt from tax, provided premiums ≤10% of sum assured (policies issued on/after April 1, 2012) and ≤₹2.5 lakh/year for ULIPs (issued on/after Feb 1, 2021).