(source : ANI) ( Photo Credit : ani)
Discover the Tax Benefits of Term Insurance in 2025
Hey there, if you’re thinking about securing your family’s future, term insurance is a smart move. It gives your loved ones a big lump-sum payout if something happens to you during the policy term, helping them cover daily expenses and more. But did you know? Beyond this protection, term insurance also comes with some great tax perks under Indian tax laws. These can lower your tax bill and make financial planning easier. Let’s break down the key term insurance tax benefits you can claim in 2025 in simple terms.
Save on Premiums with Section 80C Deductions
One of the best parts of buying term insurance is the tax deduction on premiums under Section 80C of the Income Tax Act. You can cut your taxable income by up to ₹1.5 lakh each year. This works great if you’re sticking with the old tax regime – the new one skips most deductions like this.
Just make sure your premiums stay within the limits. For example, if you pay ₹50,000 a year for your term insurance plan, that amount counts toward your ₹1.5 lakh cap. You can mix it with other savings like your provident fund or kids’ school fees. It’s an easy way for many Indians to trim their taxes while building security. Who wouldn’t love that?
Extra Savings on Health Riders via Section 80D
Want to boost your term insurance with health coverage? Adding riders for things like critical illness or hospitalization lets you claim under Section 80D. This gives you a separate deduction – up to ₹25,000 if you’re under 60, or ₹50,000 if you’re a senior citizen.
These health insurance riders are a game-changer because they don’t eat into your Section 80C limit. So, if you’re paying extra for that peace of mind, the taxman gives you a break on it too. It’s like getting protection and savings in one package.
Get Tax-Free Payouts for Your Family Under Section 10(10D)
Here’s the real winner for your family: the death benefit from your term insurance is completely tax-free under Section 10(10D). Your nominee gets the full sum assured without any tax cuts, as long as the policy follows the rules – like keeping annual premiums below a certain percentage of the coverage amount.
This means no surprises for your loved ones during tough times. They receive every rupee to handle finances, from loans to living costs. It’s a huge relief and one of the top reasons people choose term insurance plans.
Why the Old Tax Regime Matters for These Benefits
Since 2020, you can pick between the old and new tax regimes in India. The new one has lower rates but drops deductions like those under Sections 80C and 80D. If term insurance tax benefits are your goal, go for the old regime – it’s perfect if you have investments or family expenses that qualify for breaks.
Your choice depends on your income and plans, but for most families, the old regime maximizes these perks. Chat with a tax advisor to see what fits you best.
Why Term Insurance Shines in 2025
In 2025, term insurance isn’t just about safety – it’s a tax-saving powerhouse too. With benefits from Sections 80C, 80D, and 10(10D), you get financial protection plus real savings. Companies like Tata AIA make it simple with reliable plans that include these advantages.
Adding term insurance to your portfolio helps you plan smarter for the future. It’s affordable, flexible, and now even more rewarding with these tax rules.
In short, grab a term insurance plan this year to shield your family and ease your taxes. Understand the sections, pick the right regime, and watch how it strengthens your finances. For personalized advice, check with insurers or experts – it’s worth it!
(This is an advertorial from VMPL. isn’t responsible for the content.)
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