4 The death benefit of a life insurance policy is tax-free, if the policy is taken for the benefit of a dependent.

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The maturity proceeds of a life insurance policy are tax-free, if the policy is taken for a term of at least 10 years

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The maturity proceeds of a life insurance policy issued after 1st April 2003 are taxable, if the premium paid exceeds 20% of the sum assured.

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The sum received under a keyman insurance policy is taxable, even if the policy is taken out before 31st March 2003 or if it matures after 10 years.

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4

facts about taxability of Life Insurance policy

The death benefit of a life insurance policy is tax-free, if the policy is taken for the benefit of a dependent.

The maturity proceeds of a life insurance policy are tax-free, if the policy is taken for a term of at least 10 years

The maturity proceeds of a life insurance policy issued after 1st April 2003 are taxable, if the premium paid exceeds 20% of the sum assured.

The sum received under a keyman insurance policy is taxable, even if the policy is taken out before 31st March 2003 or if it matures after 10 years.