Final Insurance Tax

7/29/2019 Final Insurance Tax

1/53

1

1.INTRODUCTION TOINSURANCE

Insurance is the equitable transfer of the risk of a loss, from one entity to

another in exchange for payment. It is a form of risk managementprimarily used to hedge against the risk of a contingent, uncertain loss.

An insurer, or insurance carrier, is a company selling the insurance; the

insured, or policyholder, is the person or entity buying the insurance

policy. The amount to be charged for a certain amount of insurance

coverage is called the premium. Risk management, the practice ofappraising and controlling risk, has evolved as a discrete field of study and

practice.

The transaction involves the insured assuming a guaranteed and known

relatively small loss in the form of payment to the insurer in exchange for

the insurer's promise to compensate (indemnify) the insured in the case of

a financial (personal) loss. The insured receives a contract, called the

insurance policy, which details the conditions and circumstances under

which the insured will be financially compensated.

Insurance is a subject listed in the Union list in the Seventh Schedule to

the Constitution of India where only centre can legislate. The insurance

sector has gone through a number of phases by allowing private companies

to solicit insurance and also allowing foreign direct investment of up to

49%, the insurance sector has been a booming market. However, the

largest life-insurance company in India is still owned by the government.
http://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_%28finance%29http://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Decision_modelhttp://en.wikipedia.org/wiki/Indemnifyhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Insurance_policyhttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Foreign_direct_investmenthttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Insurance_policyhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Indemnifyhttp://en.wikipedia.org/wiki/Decision_modelhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_%28finance%29http://en.wikipedia.org/wiki/Risk_management


2/53

2

Insurance is defined as a cooperative device to spread loss caused by a

particular risk over a number of persons who are exposed to it and who

agree to ensure themselves against that risk.

Risk is uncertainty of financial loss it should not be confused with the

chance of loss, which is the probable number of losses out of a given

number of exposures.


3/53

3

1.1HISTORY OF INSURANCETo decide the exact beginning ofinsurance or the first time that something

was insured is not easy. In 2100 BC, traders in Babylonia assumed the

risks of the caravan trade through loans that were repaid after the goodshad arrived safely. The Romans used burial clubs as a form of life

insurance, providing funeral expenses for members and payments for

survivors.

The growth of towns and trade in Europe brought a need to protect

members of guilds from loss by fire or shipwreck. By the middle of the

14th century marine insurance was practically universal among the

maritime nations of Europe. In London, Lloyd's Coffee House was a place

where merchants, ship owners, and underwriters met to transact business.

By the end of the 18th century Lloyd's had progressed into one of the first

modern insurance companies. Edmond Halley constructed the first

mortality table in 1693.

With the growth of British commerce insurance developed rapidly in the

18th century. Prior to the formation of corporations devoted solely to the

business of writing insurance, policies were signed by a number of

individuals, each of whom wrote his name and the amount of risk he was

assuming underneath the insurance proposal - hence the term

underwriter.

The first stock companies to engage in insurance were chartered in

England in 1720. The first American insurance company was founded in

1735. The Presbyterian Synod of Philadelphia sponsored the first life

insurance corporation in 1759 for the benefit of Presbyterian ministers and

their dependents.
http://www.findlocalinsurance.com/http://www.insuremylife.org/http://www.insuremylife.org/http://www.findlocalinsurance.com/http://www.insuremylife.org/http://www.insuremylife.org/http://www.insuremylife.org/http://www.insuremylife.org/http://www.findlocalinsurance.com/http://www.insuremylife.org/http://www.insuremylife.org/http://www.findlocalinsurance.com/


4/53

4

The New York Fire of 1835 called attention to the need for adequate

reserves to meet unexpectedly large losses. The great fire of Chicago in

1871 showed the costly nature of fires in structurally dense cities.

Reinsurance, where losses are distributed among many companies, was

devised to meet such situations and is now common in other lines of

insurance.

The Workmen's Compensation Act of 1897 in Britain required employers

to insure their employees against industrial accidents.

Public liability insurance began in the 1880s and attained major

importance with the advent of the automobile.

In the 19th century states entered the field of insurance to safeguard

workers against sickness, disability and unemployment.

In World War II the government provided life insurance for the troops.

Today that has expanded to include pensions and otherforms of insurance.

Today you can find insurance to protect lives, homes, cars, and businesses

from wind, fire, hail, earthquakes, hurricanes, tornadoes, liability,

disability, long-term care, unemployment, life, cancer, health, critical

illness and many more.

In India, insurance has a deep-rooted history. Insurance in various forms

has been mentioned in the writings of Manu (Manusmrithi), Yagnavalkya

(Dharmashastra) and Kautilya (Arthashastra). The fundamental basis of

the historical reference to insurance in these ancient Indian texts is the

same i.e. pooling of resources that could be re-distributed in times of
http://www.findlocalinsurance.com/http://www.findlocalinsurance.com/http://www.insuremyvehicle.com/http://www.insuremylife.org/http://www.findlocalinsurance.com/http://www.findlocalinsurance.com/http://www.insuremylife.org/http://www.insuremyhouse.com/http://www.insuremyvehicle.com/http://www.insuremyhouse.com/firesafety.htmlhttp://www.insuremyhouse.com/tornado.htmlhttp://www.insuremylife.org/http://www.insuremylife.org/http://www.insuremyhouse.com/tornado.htmlhttp://www.insuremyhouse.com/firesafety.htmlhttp://www.insuremyvehicle.com/http://www.insuremyhouse.com/http://www.insuremylife.org/http://www.findlocalinsurance.com/http://www.findlocalinsurance.com/http://www.insuremylife.org/http://www.insuremyvehicle.com/http://www.findlocalinsurance.com/http://www.findlocalinsurance.com/


5/53

5

calamities such as fire, floods, epidemics and famine. The early references

to Insurance in these texts have reference to marine trade loans and

carriers' contracts.

Insurance in its current form has its history dating back until 1818, when

Oriental Life Insurance Company was started by Anita Bhavsar in Kolkata

to cater to the needs of European community. The pre-independence era in

India saw discrimination between the lives of foreigners (English) and

Indians with higher premiums being charged for the latter. In 1870,

Bombay Mutual Life Assurance Society became the first Indian insurer.

At the dawn of the twentieth century, many insurance companies were

founded. In the year 1912, the Life Insurance Companies Act and the

Provident Fund Act were passed to regulate the insurance business. The

Life Insurance Companies Act, 1912 made it necessary that the premium-

rate tables and periodical valuations of companies should be certified by

an actuary. However, the disparity still existed as discrimination between

Indian and foreign companies. The oldest existing insurance company in

India is the National Insurance Company Ltd., which was founded in 1906.

It is in business.

The Government of India issued an Ordinance on 19 January 1956

nationalising the Life Insurance sector and Life Insurance Corporation

came into existence in the same year. The Life Insurance Corporation

(LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident

societies245 Indian and foreign insurers in all. In 1972 with the General

Insurance Business (Nationalisation) Act was passed by the Indian

Parliament, and consequently, General Insurance business was
http://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Actuaryhttp://en.wikipedia.org/wiki/Actuaryhttp://en.wikipedia.org/wiki/Kolkata


6/53

6

nationalized with effect from 1 January 1973. 107 insurers were

amalgamated and grouped into four companies, namely National Insurance

Company Ltd., the New India Assurance Company Ltd., the Oriental

Insurance Company Ltd and the United India Insurance Company Ltd. The

General Insurance Corporation of India was incorporated as a company in

1971 and it commence business on January 1, 1973.

The LIC had monopoly till the late 90s when the Insurance sector was

reopened to the private sector. Before that, the industry consisted of only

two state insurers: Life Insurers (Life Insurance Corporation of India, LIC)

and General Insurers (General Insurance Corporation of India, GIC). GIC

had four subsidiary companies.

With effect from December 2000, these subsidiaries have been de-linked

from the parent company and were set up as independent insurance

companies: Oriental Insurance Company Limited,New India Assurance

Company Limited, National Insurance Company Limited and United India

Insurance Company Limited.
http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/General_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Oriental_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/New_India_Assurance_Company_Limitedhttp://en.wikipedia.org/wiki/New_India_Assurance_Company_Limitedhttp://en.wikipedia.org/wiki/National_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/United_India_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/United_India_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/United_India_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/United_India_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/National_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/New_India_Assurance_Company_Limitedhttp://en.wikipedia.org/wiki/New_India_Assurance_Company_Limitedhttp://en.wikipedia.org/wiki/Oriental_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/General_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_India


7/53

7

1.2TYPES OF INSURANCE

1. Marine Insurance:

The marine insurance is the oldest form of insurance. Under Bottom bond,

the system of credit and the law of interest were well-developed and were

based on a clear appreciation of the hazard involved and the means of

safeguarding against it.

If the ship was lost, the loan and interest were forfeited. The contract of

insurance was made a part of the contract of carriage, and Manu shows

that Indians had even anticipated the doctrine of average and contribution.

Freight was fixed according to season and was expected to be reasonable

in the case of marine transport which was then very much at the mercy of

winds and elements. Travellers by sea and land were very much exposed

to the risk of losing their vessels and merchandise because the piracy on

the open seas and highway robbery of caravans were very common.

Besides there were several risks, Many times, it might have been captured

by the king's enemies or robbed by pirates or got sunk in the deep waters.

The risk to owners of such ships were enormous and, therefore, to

safeguard them the marine traders devised a method of spreading over

them the financial loss which could not be conveniently borne by the

unfortunate individual victim.


8/53

8

1.Fire Insurance:After marine insurance, fire insurance developed in present form. It had

been observed in Anglo- Section Guild form for the first time where the

victims of fire hazards were given personal assistance by providing

necessaries of life.

It had been originated in Germany in the beginning of sixteenth century.

The fire insurance got momentum in England after the great fire in 1666

when the fire losses were tremendous.

About 85 per cent of the houses were burnt to ashes and property worth of

sterling ten crores were completely burnt off. Fire Insurance Office was

established in 1681 in England. With colonial development of England, the

fire insurance spread all over the world in present form 'Sun Fire Office

was successful fire insurance institution.

In India, the general insurer started working since 1850 with the

establishment of the Triton Insurance, Calcutta. Again in 1861, the North

British and Mercantile catered the requirements of insurance business.


9/53

9

2.Life Insurance:Life insurance made its first appearance in England in sixteenth century,

the first recorded evidence in England being the policy on life of William

Gibbons on June 18, 1653. Even before this date annuities had become

quite common in England, and marine insurance had, in fact, made its

appearance three thousand years ago.

The life insurance developed at Exchange Alley. The first registered life

office in England was the Hand-in-Hand Society established in 1696. The

famous Amicable Society for a Perpetual Assurance Office started its

operation since 1706.

Life insurance did not prosper in the United States during the 18th century,

because of serious fluctuations in death-rate, but soon after 1800 some

active interest began to be shown in this enterprise because of theapplication of level premium plan which had by then been in operation in

U.K. for more than a generation.

In India, some Europeans started the first life insurance company in

Bengal Presidency, viz., the Orient Life Assurance Company in 1818. The

year 1870 was a year of a landmark in the history of Indian Insuranceseparating the early period of pioneering attempts at life insurance from

the subsequent period of steady development at the establishment of Indian

Life Office, viz., Bombay Mutual Life Assurance Society in 1871.


10/53

10

The next important life office was Oriental Government Security Life

Assurance Co., Ltd., which started its operation since 1874. Since then

several offices developed in India.

3.Miscellaneous Insurance:The miscellaneous insurance took the present shape at the later part of

nineteenth century with the industrial revolution in England. Accident

insurance, fidelity insurance, liability insurance and theft insurance were

the important form of insurance at that time.

Lloyds's Association was the main functioning institution. Now,

insurances such as cattle insurance, crop insurance, profit insurance, etc.,

and are taking place. The scope of general insurance is increasing with the

advancement of the society.


11/53

11

1.3IMPORTANCE OF INSURANCE

Insurance benefits society by allowing individuals to share the risks faced

by many people. But it also serves many other important economic andsocietal functions. Because insurance is available and affordable, banks

can make loans with the assurance that the loans collateral is covered

against damage. This increased availability of credit helps people buy

homes and cars. Insurance also provides the capital that communities need

to quickly rebuild and recover economically from natural disasters, such as

tornadoes or hurricanes. Insurance itself has become a significant

economic force in most industrialized countries. Employers buy insurance

to cover their employees against work-related injuries and health

problems. Businesses also insure their property, including technology used

in production, against damage and theft. Because it makes business

operations safer, insurance encourages businesses to make economic

transactions, which benefits the economies of countries. In addition,

millions of people work for insurance companies and related businesses. In

1996 more than 2.4 million people worked in the insurance industry in the

United States and Canada. Insurance as an investment that offers a lot

more in terms of returns, risk cover &as also that tax concessions & addedbonuses not all effects of insurance are positive ones. The possibility of

earning insurance payments motivates some people to attempt to cause

damage or losses. Without the possibility of collecting insurance benefits


12/53

12

1.4ACTS

The insurance sector went through a full circle of phases from being

unregulated to completely regulate and then currently being partlyderegulated. It is governed by a number of acts.

The Insurance Act of 1938 was the first legislation governing all forms of

insurance to provide strict state control over insurance business.

Life insurance in India was completely nationalized on January 19, 1956,

through the Life Insurance Corporation Act. All 245 insurance companies

operating then in the country were merged into one entity, the Life

Insurance Corporation of India.

The General Insurance Business Act of 1972 was enacted to nationalise

the about 100 general insurance companies then and subsequently merging

them into four companies. All the companies were amalgamated into

National Insurance, New India Assurance, Oriental Insurance and United

India Insurance, which were headquartered in each of the four

metropolitan cities.

Until 1999, there were no private insurance companies in India. Thegovernment then introduced the Insurance Regulatory and Development

Authority Act in 1999, thereby de-regulating the insurance sector and

allowing private companies. Furthermore, foreign investment was also

allowed and capped at 51% holding in the Indian insurance companies.
http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_India


13/53

13

In 2006, the Actuaries Act was passed by parliament to give the profession

statutory status on par with Chartered Accountants, Notaries, Cost &

Works Accountants, Advocates, Architects and Company Secretaries.

A minimum capital of US$80 million (Rs.400 Crores) is required by

legislation to set up an insurance business.


14/53

14

2.I NTRODUCTION TO TAX SAVING ININSURANCE

It is commonly known that people purchase insurance policies to save tax.

This is why the sale of insurance products climbs massively in the months

of January and February when most people begin planning their taxes.

Though buying insurance is always a good idea, one should refrain from

viewing an insurance policy as just a tax saving tool. In an attempt to save

tax in the 11th

hour, you should not end up purchasing an ill-suited

insurance policy. It is important to remain informed ab out the various

policies and how exactly they can help you save tax. Read this article to

know more about insurance and tax saving.

How do insurance policies help in saving tax?By buying an insurance policy, you end up saving tax in a number of

ways. First of all, the premium amount (the money kept aside from yoursalary for paying insurance premium) is tax free. On premiums of

endowment plans, pure term plans and ULIPs, you get an exemption of up

to Rs.1,00,000 under Section 80C of the Income Tax Act of 1961. Then, if

you are eligible for any returns from your insurance policy, those will also

be tax free. Finally, the sum assured (the money your beneficiary receives

after your death) or the maturity value is completely tax free. So neither do

you pay any tax for the premiums nor the cover amount. This proves to be

profitable and is one of the main reasons why people select insurance

policies as a tax saving tools.


15/53

15

Some of the features of the Income Tax Act of 1961, in relation to

insurance, are:

Tax benefits of up to Rs.1,00,000 can be availed by salaried life

insurancepolicyholders, under Section 80CCE of the Income Tax Act.

As per Section 80D, a salaried policyholder can enjoy deduction benefits

of a maximum of Rs.15,000 for himself, and Rs.20,000 for any dependent

family member above the age of 60.

The maturity amount received from a life insurance policy is totally tax

free.

There is a tax benefit, under Sections 80C, 80CCD and 80CCC, on all

premiums paid for pension plans up to Rs.1,00,000.

You will be entitled to a tax benefit of up to Rs.15,000 for health

insurance premiums.

How to plan your policies to save taxLike mentioned above, do not make the mistake of buying an insurance

policy just to save tax. While on one hand buying insurance can help in

saving tax, on the other hand making a bad investment can prove to be a

costly mistake. So think of the long run and invest in plans that will help

you to save tax as well as provide a good cover. Invest in retirement plans,

health plans, child plans and pension plans. Some of the good taxes saving

plans available in the market today are Children Plans from SBI Life,

ICICI Prudential Health Saver and the Insta Pension Plan from

AEGONReligare, among others.
http://www.myinsuranceclub.com/life-insurance/http://www.myinsuranceclub.com/life-insurance/http://www.myinsuranceclub.com/life-insurance/http://www.myinsuranceclub.com/life-insurance/


16/53

16

One of the most preferred avenues for investment, life insurance has long

been considered as a tax saving tool. But the primary objective has been

neglected and investors end up buying the wrong product.

A life insurance is the most cost effective tool when you have to provide a

financial protection to your family in case of eventualities. What amount

of life insurance one should have depends on many factors such as income,

expenses, liabilities, goals etc. A pure life insurance i.e. Term insurance, is

the right instrument to buy high life insurance coverage. The tax benefit is

the inherent advantage which comes with this product. Hence, consider

this avenue only after analyzing your need.


17/53

17

3.IMPORTANCE OF TAX SAVINGWhat does one understand by the term, tax savings? The income that an

individual earns every year is subject to the Income Tax laws governing

that country. The Income Tax rates are not the same for all. The rates

varies basis on different income levels. So the total income tax an

individual needs to pay depends upon the annual income he or she has

earned in that given year. But, there are many ways by which one can save

income tax.

So the question arises that how to save income tax? To extract

maximum tax benefits, you need to invest your earnings wisely in

different insurance plans. This is where your investments come into play,

as a lot of investment plans come with several benefits. With the help of

tax deduction, a break granted by the government, one can save tax on

premium paid. The maturity proceeds of life insurance product are tax freeas well. You could look at long term objectives like investing in a pension

plan for a life after retirement or a life cover to secure your family's future.

There is a range oftax saving plans available for individuals to gain tax

benefits under various sections. This is why it is very important to carry

out an extensive research and know about the different products available.


18/53

18

4.Insurance Emerges as a Tax Saving Tool in I ndiaThis is that time of the year when one gets submerged in tons of

paperwork and a labyrinth of numbers and percentages. The financial year

ends for the India on March 31 and now the rush is on to close the books

and pay up the taxes. This is probably the busiest time for the tax

consultants and financial advisers who burn the midnight oil to save

precious money for their clients by ingenious ways to avoid paying taxes.

For the salaried though, there are very little options. But amongst all the

current instruments available to not only save taxes but also to earn while

saving, Insurance has emerged as the best tool available. Undoubtedly,

given the current volatility in the stock markets and the all-time low

interest rates on various saving instruments, insurance products are easily

one of the safer places to invest your money in and get tax breaks too.

Life insurance is one of the most popular savings investment vehicles in

India. Ironically its probably the least understood too. An insurance policy

offers much more than just tax planning and investment returns. It offers

you the ability to plan for unforeseen events that could affect your familys

financial problem adversely.

First things first insurance give protection to you and your family and

that it its primary function. It is only after protection that it is an

investment avenue that gives you tax sops. Currently we are focusing on

tax-saving; hence one should understand the various kinds of sops

available under the various sections.


19/53

19

Before we proceed ahead, S. Ramachandran, a tax consultant in Bombay

explains that before looking at an investment option as a tax saving

instrument, one should understand the difference between rebate and

deduction. Tax rebate is a certain percentage of your investment amount

which would be deducted from your final tax liability, depending on your

income bracket. It usually is in the range of 15 percent and 20 percent.

Whereas, in tax deduction, the entire amount of your investment would be

deducted from your taxable income and your tax liability would be

calculated on the balance.

And now that the basics have been understood, it is imperative to choose

the right policy. You can put your money either in the traditional life

insurance policy which would then throw up choices of endowment, whole

life or term life. The other option is to go for a unit-linked insurance

policy. Yet, whatever be the kind of policy that you choose, there will be arebate under Section 88 of the Income-Tax Act (I-T Act). Also, the

maturity or death benefit would be tax-free under Section 10(10D) of the I-

T Act. However, these tax sops are subject to conditions of lock-in.

One has to remember that when a taxpayer discontinues a traditional life

insurance policy before premium for two years has been paid, no tax

rebate under Section 88 will be allowed in the year in which the policy is

discontinued.

In a unit-linked insurance policy, if the terminates his policy before five

years premiums have been paid, he stands to lose out on the tax benefits

earlier claimed. So if the examples above were with respect to a unit-


20/53

20

linked policy and the policies were terminated after four years, the

taxpayer would be taxed on Rs.3,000 (Rs.750 for four years) in the fifth

year.

Talking about Unit Linked Insurance Plans it is imperative at this juncture

for investors to know that these policies are a bit different. The premiums,

after deducting charges and expenses, are invested in a fund (similar to a

mutual fund); more on the lines of mutual funds coupled with a life cover.

If you opt for a unit-linked endowment policy, you can choose to investyour premiums in debt, balanced or equity funds. If you choose a debt

fund, the majority of your premiums will get invested in debt securities

like gilts and bonds. If you choose equity, then a major portion of your

premiums will be invested in the equity market. Presently, only a few

companies like LIC, ICICI Prudential Life, Birla Sun Life and Aviva offer

unit-linked insurance products. UTI offers UTI-ULIP.

Coming back to the tax angle, tax consultants say that single-premium

policies are not a very good idea when saving for tax. This is because

when the premium exceeds 20 percent of the sum assured; the benefit for

rebate is restricted to 20 percent of the sum assured thus not giving the

desired tax benefit.

In case of child benefit policies, tax benefits are available in the form of

rebate. Here, the premium paid attracts rebate under Section 88. Maturity

or death is tax free.


21/53

21

Pension benefit policies offer tax deduction under Section 80CCC of the I-

T Act. Annual premium, up to a maximum of Rs.10,000 would be

deducted from the taxable income.

At the moment Indian investors no longer have to depend solely on the

government owned Life Insurance Corporation of India. There is now a

plethora of companies, international that too, to choose from. AMP

Sanmar, Allianz Bajaj Life Insurance, Aviva Life Insurance, Birla Sun

Life Insurance, HDFC Standard, ICICI Prudential, ING Vyasa, LIC, Max

New York Life, MetLife India Insurance, Om Kotak Mahindra Life, Tata

AIG, SBI Life are some of the insurers one can choose from.


22/53

22

5.TAX BENEFI TS IN L I FE INSURANCELife insurance policies can be useful tax planning tools, because the policyholder is eligible for tax benefits under the Income Tax Act 1961 (Act).

Though there are multiple modes for saving tax, life insurance is one of themost effective tax planning instrument. Plans from Max Life Insurance canbe used for protection, long term savings and tax planning. There are twokinds of income tax benefits available to individuals with respect to longterm savings being made in Life Insurance policies:

Deductions

o 80C/80CCC: Benefit is available to Individual assesses and Hindu

Undivided Family assesses. In case of individual assesses - Himself/herself,

spouse, children of such individual

In case of HUF assesses - any member of HUF If the amount ofpremium paid in a financial year for a

policy is in excess of 20% of the actual capital sumassured, then deduction will be allowed only forpremiums upto 20% of the sum assured.

For insurance policies issued on or after April 01 2012,deduction is allowed for only so much of the premiumpayable as does not exceed 10% of the actual capital sum

assured. Above benefits shall be reversed if the policy is

terminated/cease to be in force within 2 years fortraditional products and 5 years for ULIP products afterthe date of commencement of policy.

Sec 80CCE - Maximum amount of deduction that anassessed can claim under Sections 80C, 80CCC will belimited to Rs. 100,000.


23/53

23

o 80D Benefit is available to Individual assesses and Hindu

Undivided Family assesses. In case of individual assesses - Himself/herself,

spouse, dependent children and parents of suchindividual

In case of HUF assesses - any member of HUF The qualifying amounts under Section 80D for self,

spouse and dependent children is upto Rs. 15,000/- andadditional deduction upto Rs. 15,000/- for the parents.However, a higher amount of upto Rs. 20,000/- ispermitted for parents, if they are senior citizens. Assesseeis allowed to make any payment on account of preventivehealth checkupsupto Rs. 5,000 within prescribed overalllimit.

o 80DD: Premiums paid for disabled dependent are eligible fordeduction up to Rs. 50,000 every year. A higher deduction ofRs. 75,000 shall be allowed, where such dependent is a personwith severe disability.

Exemptionso 10 (10D): Any sum received under a life insurance policy,

including the sum allocated by way ofbonus on such policywill be exempt from tax. However, this rule does not apply tofollowing amounts:

Sum received under Section 80DD(3), or A sum received under a Keyman Insurance Policy, or Any sum received other than as death benefit under an

insurance policy which has been issued on or after April 12003 and if the premium payable in any of the yearsduring the term of the policy does not exceed 20% of thesum assured. For insurance policies issued on or afterApril 01 2012, exemption would be available for policieswhere the premium payable for any of the years duringthe term of the policy does not exceed 10% of the actual

capital sum assured.


24/53

24

TAX SAVING THROUGH LIFE INSURANCE PRODUCTS

To save tax, Life Insurance products play a important role. Under the

Income Tax Act 1961, by investing in a life insurance plan, you are

allowed to claim deduction on the premiums that you pay when calculating

taxable income (subject to conditions of Income Tax Act, 1961). This

means, the insurance premiums which you pay helps in reducing your tax

outflow. Further subject to conditions, maturity proceed from Life

Insurance comes under exempted incomes. This means, no tax to be

payable on any benefits received on maturity or on death. Hence Life

Insurance Scheme can help you avail dual tax benefits. Also, you are

investing in a Life.

You can also get Tax benefits on Health Insurance and production

product. This helps in reducing the computable tax base, thus resulting in

reducing the net tax liability.


25/53

25

6.HEALTH INSURANCE SAVES TAXWe all know, there are abundant ways by which one can save tax &

money. But, to reap best of tax benefits sensible investment is the catch

General insurance, life insurance, bonds and government run policies are

some amongst many forms of investment, which every individual can

consider. But, investing in a health insurance plan like Health Advantage

Plus is also a good deal for all those who want to secure their familys

health and concomitantly want to save tax too.

Health Advantage Plus policy is not just about coverages against

outpatient department expenses (OPD), No sub-limit on room rent, no co-

payment for any diseases or any hospitalisation expenses, but it is alsoabout availing best of tax benefits simultaneously.

How much can you save?

Tax is calculated under Section 80D, the premium amount paid is

deductible up to Rs. 15,000 from the income per year. The deductible limit

may increase up to Rs. 20,000 per year in case of an individual bearing the

age of 60years and above. If you are paying your parents medical

insurance premium then there could be additional deduction of Rs. 15,000

per year. This amount paid can be claimed for under section 80D. If your

parents are senior citizens, then the deductible can be Rs 20,000.


26/53

26

In all, every insured is viable to get a deduction up to Rs. 35,000 from the

taxable income as per the medical insurance premiums paid for self,

spouse, children(Rs.15000) and parents(If senior citizen Rs.20000/- else

Rs.15000/-) .

Save tax with health insurance

It's common knowledge that buying health insurance helps you to save tax.

Under Section 80D of the Income Tax Act 1961, you can get a maximum

tax benefit of Rs.15000 on health insurance premium paid. The exemption

limits are as follows:

An individual can avail an annual deduction of Rs.15000 from taxableincome for health insurance premium paid for self and dependants.

'Dependents,' in this case, refers to spouse and children.

In the case of senior citizens (aged 56 years and above), the annualdeduction from taxable income goes up to Rs.20000.

But here's a tidbit that might help you save more tax than you think:

If you are paying the premium for your parents' health insurance, youcan claim an additional tax benefit up to Rs.15000 under the provisions

of Section 80D.

If your parents are senior citizens (aged 56 years and above), the benefitgoes up to Rs.20000.


27/53

27

However, there are a few conditions:

You cannot claim tax benefit on health insurance premium paid for yourin-laws.

Proof of payment of premium has to be furnished, in order to avail thetax benefit.

Except cash, any mode of payment is acceptable for claiming tax benefit. The health insurance premium must be paid from your taxable income of

that year only if you want to claim a deduction. If you have paid the

premium from your savings or from gifts of money received by you, then

you will not be eligible to claim tax benefit under Section 80D.


28/53

28

7.TAX SAVING IN L I FE INSURANCELife Insurance is a basic financial need of all working individuals that have

dependents relying on them for financial support. In fact, a Life Insurance

policy is the first financial product considered by most individuals because

financial security of family is of utmost importance.

In addition to protecting your family, Life Insurance can also be used to

accumulate wealth for future needs. There are various options (listed

below) available depending upon the specific needs of the individual. Our

advisors will be happy to assist you with these. Financial security of the family Child's education Child's marriage Wealth creation Retirement

Tax benefi ts available when buying L if e I nsurance:

Life Insurance policies issued in India come with added tax benefits that

make these policies a cost-effective long-term protection cum investment

option. They currently fall under the "EEE" regime, i.e., the premiums

paid, income earned, and payment of maturity proceeds or claims are all

100% exempt (E) from tax subject to the limit specified under relevant

provisions of the Income Tax Act.

At the time of purchase of the policy, an investment of 1 lakh or more can

save you 30,900 in Income Tax. You can choose to buy a policy for a


29/53

29

larger amount, but the tax exemption will be limited to an investment

amount of 1 lakh only.

More on tax benef i ts through l if e insurance:

Premiums on Life Insurance:

A premium paid towards covering life of an individual is eligible for

deduction under Section 80C of the Income Tax Act. At the time of

purchase of the policy, an investment of 1 lakh or more can save you up

to 30,900 in Income Tax. Of course you can choose to buy a policy for a

larger amount; however, the tax exemption will be limited to an

investment amount of 1 lakh.

Premiums on Health insurance policies and Riders:

Health Insurance premiums and riders such as critical illness riders, and

other health-related riders attached to a Life Insurance policy are eligible

for deduction under section 80D of the Income Tax Act. This deduction is

available to both individuals and Hindu Undivided Families (HUFs). The

maximum amount deductible is 15,000 per year for an individual or his

family and an additional deduction of 15,000 per year where policy is

taken on the health of dependent parents. However, the additional amount

of 15,000 will be replaced with 20,000 per annum, in case parents aresenior citizens of age 65 years and above. This can save tax

upto 4,635 and 6,180 respectively. Both can be clubbed together to avail

the maximum benefit of upto 10,815.


30/53

30

Death Claims, Survival and Maturity Benefits:

Payments received as survival benefits(money back, etc.), maturity

proceeds etc. towards Life Insurance policies are exempt from tax under

section 10(10D) of the Income Tax Act subject to fulfillment of the

condition that the premium should not exceed 10% of actual capital sum

assured at any point of time during the tenure of policy. Moreover, amount

received on death of the policyholder is exempt from tax, without any

conditions.


31/53

31

8.L I FE INSURANCE AND TAX BENEFI TSIf you are looking for tax benefits, insurance is one of the most likeable

options. Nowadays, insurance companies offer investment plans or unit

linked plans, which give customers an option to choose the risk exposure,

which decides their returns from insurance policies.

The premiums paid by the customer are typically divided into expense and

investment parts. The expense portion consists of the usual administration,

sales, management and mortality expenses.

The investment portion of the premium on the other is invested in different

financial market instruments. The risk and returns on these depends on risk

and return of the underlying instruments into which the investment into

which the investments goes. With the advent of investment plans or unit-

linked plans, the choice to invest this part is now in the hands of

customers.

The investment plans also called unit-linked plans have advantage over

other insurance plans due to the flexibility for customers to choose the

investment options. Thus they are more transparent and easy to

understand. The best part is that customers can shift their money between

fund options anytime. For example, if a customers can shift their money

between fund options anytime. For example, if a customer initially chooses

an equity fund for his investment portion and after some months expects a

fall in equity fund to a balanced or debt fund to a balanced or debt fund.


32/53

32

Most insurance companies provide different underlying fund options for

investment. The fund option varies on the basis of exposure to debt,

equity, government securities and money or cash market instruments. The

customer can switch between funds options any time during policy years.

The switching comes with a cost but usually there are some free switches

available every year. ICICI Prudential and TATA AIG giving the

maximum four free switches annually.

An individual can choose the exposure based on the choices available in

different plans. The exposure can vary from 100% debt/equity to 0%

debt/equity with and without various combinations of debt, cash or bonds.

Some plans offer funds, which are completely focused on money market or

bond market.

The underlying funds for the Insurance plans invest the monies only into

only those investment options that are approved by IRDA.

Most companies give 4-6 underlying fund options. An additional fee is

associated with the management of the various fund options. The Fund

Management expense can vary from 0%for balanced fund plus option ofBajaj Allianz fund to 1.75% for some fund options from TATA AIG,

ICICI PRUDENTIAL and Met Life.

Another interesting feature in some of the plans is the option to create

customised asset allocation by investing in any combination of underlying

fund options instead of choosing just one option.


33/53

33

The most important part a customer needs to understand is that the

investment portion of the insurance premium is not 100%.

There are many expenses associated with insurance plans. Major expenses

are sales, marketing, underwriting, mortality and administration expense

which accounts for almost 20-25% in the first year and is much less from

the second year onwards. Some companies give option to invest higher

portion from the first year on wards. For example, ICICI Prudential(Life

Link Plan) invests almost 95% of the premiums paid from the first year

onwards.Max New York Life invests complete 100% after the third year

onwards.

Thus ULIP, if most of the amount available is not invested in few years,

say at 50% in the first year, then a customer will first need to break even

and then start earning. Thus a customers needs to be very careful while

investing in ULIPs.

A customer can track the value of underlying fund at the end of the day

based on the Net Asset Value of the fund. In case of death, the customer

gets the sum assured or the NAV of the fund, whichever is higher? Thus,the investment plan or the unit-linked plan gives a complete protection.

Underlying funds with more equity exposure usually gives better returns

but also carry a higher risk exposure as the major portion is invested in the

equity market. The underlying fund options gives the advantage of shifting

monies from higher risky to less risky funds based on the market condition


34/53

34

a customer risk appetite. The customers need to be careful as the switching

between options also carries some limitations and charges.

Bid-offer spread is also important, as most customers do not understand

the implications. It will give the difference between the NAV at which you

sell. There is always a spread. Thus when you switch from one fund to

another or in case of buying a fund the bid-offer spread needs to be taken

into account.

Some plans also give a top-up option in which a customer can purchase

additional amount into their policy. The top-up option may also carry

certain restrictions and charges. The customer can also withdraw some

amount from the plans any time during the course of the policy. This

feature can be used for an advantage by pumping in monies at the end of

financial year for tax benefits and talking them out during the next

financial year. The customer need to look at the withdrawal charges

involved and the benefit they derived out of such transactions.

Some investment plans and Unit Linked plans available in the market

compared in the table below. The table shows the plans, underlying fundoptions, charges and other features.


35/53

35

TAX SAVING INSURANCE POLICY

In the tax-saving season, buying an insurance policy is a temptation most

investors yield to. There is nothing wrong in choosing a long-term product

which comes with some tax sops. The problem is in simplistic decision

making by most investors when it comes to insurance.

This naivet?Is exploited by unscrupulous insurance agents who tend to

manipulate the features of the product to misrepresent it to investors. Here

are a few pointers before you buy an insurance policy this season.

First, investors see a huge merit in pre-emptive investments. Most are

unable to develop a regular saving habit, though they know they have to

save for their future. Savings happen only when consumption and

spending are cut back, which is practically tough. If an investment product

requires making a payment even before the money is available to spend,

investors prefer such products, so they are compelled to save.

The decision to buy an insurance policy is mostly done with this noble

intent of building a saving habit, or putting aside some money

compulsorily. It is important not to be carried away about how much can

be realistically put aside, regularly and over a long period. A rule of thumbis to estimate the increase in income from increment and career

advancement and direct that to such compulsory saving.

Alternatively, the premium committed should not be over 5% of the

monthly income. If one can save more than that, a low premium

commitment provides the room for other investments. The premium


36/53

36

committed should never over-estimate the ability to save regularly, even

under a compulsion.

Second, investors are biased by their immediate need to save tax. They buy

an insurance policy that would reduce their immediate tax liability,

without taking into account their ability to sustain the high premium

payment in the later years. Most tax-saving products are designed to

encourage long-term savings. They have a lock-in period during which

they cannot be accessed. Insurance policies eligible for tax concessions are

also long-term products whose benefits will accrue over time.

Investors need to know their choices if they are unable to pay the

premium. Can the policy be made fully paid up (the cover is re-adjusted

for premium paid)? Can missed premiums be paid later? Does the policy

lapse if premium is not paid? Can it be revived later?

Deciding on a premium amount, based purely on tax saved in the current

year, and buying a unit-linked insurance policy (ULIP) with no facility to

modify the terms are common errors investors make. Ask your insurance

agent specifically about the consequences of not being able to pay the

premium.

Third, investors are unwilling to look at insurance as a risk cover, but as

investments. They always choose policies that return something to them,

over pure term policies that only offer a cover. However, they do not

check how these returns might behave over varying holding periods. Good

returns may accrue in a ULIP only over long periods.


37/53

37

9.TAX PLANNING AND INSURANCEPremium paid on life insurance policies entitles you to tax benefits. Read

on to find out more about this.

What are the tax benefi ts available to an individual i n r espect ofpremium paid on li fe insurance poli cies?

Rebate under section 88 is available in respect of life insurance premium

only up to the assessment year 2005-06. From the assessment year 2006-

07, life insurance premium paid by an individual qualifies for a deduction

under section 80C of Income Tax Act, 1961. An individual can claim

deduction on premium paid for a maximum of Rs 100,000 in each

financial year.

Deduction under section 80C is a deduction from gross total income.

Amount deductible under section 80C is equal to:

100% of the qualifying investment, which includes life insurancepremium, or

Rs 100,000, whichever is lower.What are the tax benefi ts available under pension plans?

Under section 80CCC, where an individual assessee has paid/deposited

any amount for any annuity plan of the Life Insurance Corporation of India

or any other insurer receives pension from a fund referred to in section

10(23AAB), he/she will be allowed a deduction up to Rs 10,000 from the

total income.


38/53

38

Under section 80CCD, where an assessee, being employed by the central

government on or January 1, 2004, deposits any amount in his account

under a pension scheme notified by the central government makes any

contribution to the notified pension scheme it is deductible in the hands of

the concerned employee up to a maximum of 10% of his salary.

Any income of a fund set up by the Life Insurance Corporation of India on

or after August 1, 1996 or any other insurer to which contribution is made

by any person for receiving pension from such fund, and which is

approved by the Controller of Insurance Regulatory and Development

Authority, has been exempted from income tax under section10(23AAB).

From the assessment year 2006-07, the deduction aggregate, under section

80C, 80CCC, 80CCD cannot exceed Rs 100,000.

Section 80CCC and 80 CCD have been amended with effect from theassessment year 2006-07 so as to provide that where any amount paid or

deposited by the assessee has been allowed as a deduction with reference

to that amount shall not be allowed under section 80C.

Are maturity proceeds on life insurance and pension policiestaxable?

The maturity proceeds of life insurance policies are not taxable. However,

under pension plans, up to one third of the maturity amount can be

withdrawn in cash and the same is treated as tax-free. An annuity has to be

purchased with the remaining two-third amount.


39/53

39

Pension receipts from the same will be treated as income in the hands of

the assessee and taxed accordingly.

Can tax benefits be claimed if an individual on his/her spousespoli cy pays the premium?

Tax rebate under section 88 can be claimed if the premium is paid by an

individual on his/her spouses policy but up to the assessment year 2005-

06. From the assessment year 2006-07 life insurance premium paid by an

individual on his/her spouses policy qualifies for a deduction under

section 80C of Income Tax Act, 1961.

I f a person discontinues paying premium on his li fe insurance or apension pol icy, does he get tax benefi ts?

If a person stops paying premium amounts on his/her life insurance policy,

it amounts to discontinuation of the policy. Hence, he is not entitled to

claim any tax benefits.

If a taxpayer discontinues the life insurance policy before premiums have

been paid for a period of 2 yrs from the commencement of the policy, no

tax deduction is allowed in respect of any premium paid on that policy in

the year which the policy is terminated.


40/53

40

Further, the amount of tax deduction, allowed for the premium paid in the

preceding year, is also treated as the tax payable for the year in which the

policy is terminated.

I f a person, participating in a uni t-li nked insurance plan(UL IP),terminates hi s poli cy, can he claim any tax benefi ts on the same?

If a person participates in a unit linked insurance plan (ULIP) and then

terminates his participation, he will not be entitled to claim any tax

benefits.

What are the deductions available in respect of a medicalinsurance premium?

The premium paid for medical insurance qualifies for rebate under section

80D as follows:

Insurance premium paid or Rs 10,000 whichever is lower.The aforesaid limit is Rs 15,000, where the individual or his spouse

or dependent parents or any member of the family is a senior citizen.


41/53

41

What are the taxes benefi ts from pension plans: li fe insurance?Traditionally, buying life insurance has always formed an integral part of

an individuals annual tax planning exercise. While it is important for

individuals to have life cover, it is equally important that they buy

insurance keeping both their long-term financial goals and their tax

planning exercise while also evaluating the various options at ones

disposal.

Term Plans

A term plan is the most basic type of life insurance plan. In this plan, only

the mortality charges and the sales and administration expenses are

covered. There is no saving element; hence the individual does not receive

any maturity benefits. A term plan should form a part of every individuals

portfolio. An illustration will help in understanding term plans better.

The premium for a sum assured of Rs 1,00,000 for a healthy, non-smoking

male.

Taxes as applicable may be levied on some premium quotes given above.The premium quotes are as shown on websites of the respective insurance

companies. Individuals are advised to contact the insurance companies for

further details.


42/53

42

Unit Linked I nsurance Plans (UL IPs)

Unit linked plans have been a rage of late. With advent of the private

insurance companies and increased competition, a lot has happened in

terms of product innovation and aggressive marketing of the same. ULIPs

basically work like a mutual fund with a life cover thrown in. they invest

the premium in market-linked instruments like stocks, corporate bonds and

government securities (G-secs).

The basic difference between ULIPs and traditional plans invest mostly inbonds and Gsecs, ULIPs mandate is to invest a major portion of their

corpus in stocks. Individuals need to understand and digest this fact well

before they decide to buy a ULIP.

Having said that we believe that equities are best equipped to give better

returns from a long term prospective as compared to other investmentavenues like gold, property or bonds. This holds true especially in light of

the fact that assured return life insurance schemes have now become a

thing of the past. Today, policy returns really depend on how well the

company is able to manage its finances.

However, investments in ULIPs should be in tune with the individuals risk

appetite. Individuals who have a propensity to take risks could consider

buying ULIPs with a higher equity component. Also, ULIP investments

should fit into an individuals portfolio.


43/53

43

PENSION /RETIREMENT PLANS

Planning for retirement is an important exercise for any individual. A

retirement plan from a life insurance company helps an individual insure

his life for a life insurance company helps an individual insure his life for a

specified sum assured. At the same time, it helps him in accumulating a

corpus, which he receives at the time of retirement.

Premiums paid for pension plans from life insurance companies enjoy tax

benefits up to Rs 10,000 under section 80CCC. Individuals whileconducting their tax planning exercise could consider investing in such

plans.


44/53

44

I NCOME TAXES FOR L IFE INSURANCE POLICY

HOLDERS

Termination of the unit linked insurance plan before five year

Where a member participating in the unit linked plan terminates his

participation before making contributing for a period of years. No tax

deduction will be allowed in respect of contributions made in such years.

No tax deduction will be allowed in respect of contributions made in such

year. Moreover, an amount equal to an aggregate of tax deductionsallowed in respect of the contributions to the plan in the past years shall be

deemed as tax payable by the assessee of the previous year in which he

terminates his participation in the plan.


45/53

45

PRIMARY DATA

ANALYSIS OF DATA ON INDIVIDUAL VIEWS

Analysis of individual interview sample size25

Number of people who make investment for their future

YES NO

22 3

TOTAL 25

yes

60%

no

40%


46/53

46

Number of people making investment in different type of alternatives

INVESTMENT

ALTERNATIVES

NUMBER OF PEOPLE

INVESTING

Post Office 13%

Shares & Debentures 9%

Money Market Investment 8%

Bank Deposits 13%

PPF & EPF 8%

Bonds 9%

Precious Objects 8%

Life Insurance 12%

Real Estate 12%

Mutual Fund 8%

Which of the insurance policy you preferred as tax saving instrument

10 10

5

8

0

2

4

6

8

10

12

whole life ploicy endowment policy term policy money back ploicy


47/53

47

Do you thi nk that government should provide tax benefi t for those who

invest in li fe insur ance policies?

cant say10%

no

20%yes

70%Other

70%

post office

8%shares

&debentures

14%

money market

10%

bank deposits

8%pff & epf

14%bonds

8%

precious objects

9%

life insurance

8%

real estate

14%

mutual fund

8%


48/53

48

Do you think taking l if e insurance policy is a must for tax saving?

What inf luence you to take up insur ance policy?

0

20

40

60

80

100

yes

no

yes

no

tax saving

29%

retirement benefit

27%

security purpose

29%

investment

15%


49/53

49

CONCLUSION

From the study it is concluded that

Every person is considering the life insurance as a importance as a

important avenue for investment but not only for tax benefit or other

purpose also. They are investing almost 20000-50000 in life insurance for

tax benefit.

Whereas there is 1% people also who are not interested in investing life

insurance because it is very long term investment and giving less return.

So awareness of life insurance of life insurance as a tax planning tool is

very less.

Insurance is an attractive option for investment. While most people

recognize the risk hedging and tax saving potential of insurance, many are

not aware of its advantages as an investment option as well. Insurance

products yield more compared to regular investment options, and this is

besides the added incentives offered by insurers.

You cannot compare an insurance product with other investment schemes

or the simple reason that it offers financial protection from risks,

something at is missing in non-insuranceproducts.

In fact, premium you pay for an insurance policy is an investment against

certain risk. Thus, before comparing with other schemes, you must accept

that a part of the total amount invested in life insurance goes towards

providing for the risk cover, while the rest is used for saving. Thus


50/53

50

insurance is a unique investment avenue that delivers sound returns in

addition to protection.

Life insurance is one of the most popular savings/ investment mediums

available in India. Ironically, it is probably the least understood too. An

insurance policy offers much more than just tax planning and investment

returns.


51/53

51

BIBILIOGRAPHY

Web reference:

www.Images.google.co.in

www.timeon.com

www.licindia.com

www.IRDA.com

www.insuremagic.com

www.economictimes.com
http://www.images.google.co.in/http://www.images.google.co.in/http://www.timeon.com/http://www.timeon.com/http://www.licindia.com/http://www.licindia.com/http://www.irda.com/http://www.irda.com/http://www.insuremagic.com/http://www.insuremagic.com/http://www.economictimes.com/http://www.economictimes.com/http://www.economictimes.com/http://www.insuremagic.com/http://www.irda.com/http://www.licindia.com/http://www.timeon.com/http://www.images.google.co.in/


52/53

52

ANNEXURE

QUESTIONNAIRE

Name:Age:Profession:Do you make investment for your future planning

Yes No

If yes, in which of the following alternative Post office Shares & Debentures Money Market Investment Bank Deposits PPF & EPF Bonds Precious Objects Life Insurance Real Estate Mutual Fund

If you make investment in insurance which of the followingpolicy you prefer most

Whole life policy Money back policy

Endowment policy Term policy


53/53

Do you think insurance policy is a must? YesNo

What influence you to take up insurance policy For retirement benefit For tax benefit Saving device Investment device

Upto what sum you have insured yourself 20,000 - 40,000 40,000 - 80,000 80,0001,00,000 1,00,000 or more

Do you think that government must provide tax benefits forthose who invest in life insurance policies

YesNo cant say

Final Insurance Tax

Documents

Transcript of Final Insurance Tax