Future Generali

Can I save tax with the Future Generali Flexi Online Term Plan?

Introduction

The Future Generali Flexi Online Term Plan is a life insurance plan that allows you to secure a life cover up to the age of 75 years. You have the flexibility to choose how you want the benefits to come to your family. This can either be a lump sum amount that can look after your family’s urgent and immediate financial needs or a monthly payout that will help your dependents maintain the same standard of living in your absence.

Tax benefits

The Future Generali Flexi Online Term Plan comes with tax benefits too. The benefits are as follows:

  • The premium amounts you pay towards the plan each year can be claimed for a tax deduction as per Section 80C of the Income Tax Act, 1961.
  • The amount that your family receives as the death benefits is also exempted from tax as per Section 10(10D) of the same Act.

Key points

  1. While the premium you pay towards the life insurance is eligible for a tax exemption, the lower of the following two amounts will be taken into consideration:
    • The amount of premium up to ₹1,50,000
    • The amount of premium up to 10% of the sum assured
  2. Under Section 80C, some other amounts can also be claimed like your contribution to provident fund, deferred annuity, ELSS etc. All of these avenues put together allow a total deduction of up to ₹1,50,000, so you might want to plan your premium amount accordingly

One of the best features of the plan is that the monthly payout works on an increasing-income mechanism, meaning that the amount paid to your family increases by 10% each year in order to help them combat inflation. This helps secure the family’s long term financial security as it ensures that the benefits from the plan are moving with the times.

Another benefit of the plan caters to women. The plan offers lower premium rates for women. Similarly, the plan offers lower rates for non-smokers as compared to smokers. This difference ensures that each individual gets a premium rate that is fair and equal with their lifestyle, enabling them to financially protect their family better.

Thus, if you are looking at life insurance as an instrument or avenue for tax-saving, the Future Generali Flexi Online Term Plan will serve you well.

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