Life insurance tax benefits under Section 80C and 10(10D)
Life insurance in India carries two tax benefits, and this free calculator shows how much you actually get from each. Section 80C lets you deduct your premium from taxable income — up to Rs 1.5 lakh a year, and only up to 10% of the sum assured — but this is available only under the old tax regime, not the new default regime. Section 10(10D) makes your maturity proceeds tax-free, provided the premium stays within 10% of the sum assured.
There is also a newer rule to watch: for traditional (non-ULIP) policies issued on or after 1 April 2023, if your total annual premium across such policies exceeds Rs 5 lakh, the maturity becomes taxable. The death benefit paid to your family is always tax-free, whatever the premium. Enter your premium, cover, regime and slab to see your exact position for 2026.
Frequently asked questions
Can I claim 80C under the new tax regime? No. Section 80C deductions are available only under the old regime.
When is LIC maturity taxable? If the premium exceeds 10% of the sum assured, or (for post-April-2023 traditional plans) if total annual premium exceeds Rs 5 lakh.
Is the death benefit ever taxed? No, the death benefit to your nominee is always fully tax-free.