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Did You Know?
Under the new tax rules, ULIP maturity proceeds remain tax-free only when the total annual premium for all your ULIPs is within ₹2.5 lakh.
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How Does a ULIP Investment Plan Work?
To Avail Tax Benefits: If you are looking for an investment instrument that helps you save on taxes, then a ULIP can be suitable for you. You can enjoy tax benefits on the premiums that you pay towards the policy, as per Section 80C of the Income Tax Act. Also, death benefits paid under the plan are exempt from tax as per Section 10(10D) of the Income Tax Act. However, for policies issued on or after 1 February 2021, maturity proceeds are tax-exempt only if the aggregate annual premium of ULIP policies does not exceed ₹2.5 lakh, as per prevailing tax laws.