All parents want the best education for their children. However, the cost of quality education is ever-increasing. Child Plans by Future Generali India Life Insurance can help you pay for your child’s higher education. At the same time, investing in these plans can help you with your annual tax planning due to the range of tax benefits they offer. Future Generali India Life Insurance Child Plans offer the following tax-benefits:
- Under Section 80C of the Income Tax Act 1961, the premiums paid towards child plans are eligible for an income tax deduction of up to ₹ 1.5 lakhs.
Future Generali Assured Education Plan falls under the life insurance category. It is a long-term plan that allows you to save until your child is 17 years of age. This plan is for new parents who want to fund their child’s education at the best universities eventually. With this plan, the income-tax deduction on premiums paid may be claimed separately from each parent every fiscal year if the premium is not more than 10% of the sum assured or the sum assured is at least 10 times the premium.
- Section 10(10D) of the Income Tax Act allows any payouts of the maturity amount received under a life insurance policy to be exempted. Future Generali Assured Education Plan also gives tax-exempted payouts, as per Section 10(D) of the Income Tax Act. With this plan, you can opt for maturity payouts as a lump sum or in instalments. Tax benefits apply, no matter what your payout options are.
- Section 10(10D) of the Income Tax Act allows any payout of the death benefit received under a life insurance policy to be exempted from tax when the premium paid towards the policy is not more than 10% of the sum assured amount.
In the unfortunate case of the insurer’s demise, their child will not suffer financially. Future Generali India Life Insurance will:
- Waive all remaining premiums under the policy.
- Immediately pay the death sum assured that too income tax-free.
- Pay 5% of the sum assured income-tax-free on every death anniversary of insurer until their child turns 17.
Additionally, the death (or maturity) sum assured will be:
- 10 times the amount of annualised premiums or
- 105% of the total premiums amount paid (both cases excluding other taxes, rider premiums and extra premiums, if any).
You can also opt for accidental death or disability riders, which strengthens your plan. Hence, Future Generali India Life Insurance’s Child Plans not only offer tax benefits but can also fund the education your children deserve.