What do I get if I insure?

A Peace of mind, that you have secured your family from major risks - be it death, illness, accidents, theft or natural calamities.
In monetary terms, you can claim tax-deductions under section 88 (although now the deductions will depend on your income bracket).

Premium paid towards a life insurance policy, up to Rs 60,000, can be claimed as a tax-deduction u/s 88. However, the amount that can be claimed as a tax-deduction depends on the income bracket (given below in the table).

Income bracket (Rs per annum) Tax-Deduction on Premium

Income bracket (Rs per annum) Tax-Deduction on Premium
< 150,000 20%
150,000 - 500,000 10%
> 500,000 NIL

- Survival benefits or Interim benefits, i.e. money received during the term of a money back policy are tax-free. For example, money received from SBI’s Sanjeevan policy, during the term of the policy, is guaranteed and tax-free.
- Maturity benefits or the amount received at the end of the term of a policy is also tax-free.
- Premium paid towards certain pension policies such as LIC’s Jeevan Suraksha, HDFC’s Pension plan and ICICI’s Forever Life is tax free up to Rs 10,000 under section 10CCC.
- Regular pension received under pension policies is taxable. However, the lump-sum cash option available under these policies is tax-free.