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Insurance and Tax Planning
Life insurance policies can be useful tax planning tools, because the policy holder is eligible for tax benefits under the Income Tax Act 1961 (Act). Though there are multiple modes for saving tax, life insurance is one of the most effective tax planning instrument. With our unit linked life insurance plans individuals can not only save tax but also look at achieving their long term goals
Life insurance Plans form Kotak life insurance provides several benefits other benefits: life cover, investment plans with wealth maximization opportunities, child planning options, retirement planning options and all of them coupled with effective tax saving options.
Here are a few advantages of tax planning using life insurance policies from Kotak Life Insurance:
  • Tax Planning Adv. 1 - Premiums paid under a life insurance policy are eligible for deduction under Section 80C* of the Act, subject to the provisions of the said section.
  • Tax Planning Adv. 2 -Contributions to a pension plan are eligible for deduction under Section 80CCC* of the Act, subject to the provisions of the said section.
  • Tax Planning Adv. 3 - The proceeds under a life insurance policy are exempt under Section 10(10D) of the Act, subject to the provisions of the said section.
*As per the prevailing law, the aggregate amount of deduction under section 80C and 80CCC shall not exceed one lakh rupees.
Please Note: The above information only provides a general overview of some aspects of the tax laws applicable to life insurance/pension plans. Please consult a tax advisor before taking any action.
 Service Tax
Service tax, education cess and higher secondary education cess will be additionally charged to the policyholder on the applicable charges/premium as notified by the Government of India from time to time.
Service tax, education cess and higher secondary education cess will be charged with effect from16th May 2008 on certain charges levied towards the management of unit-linked insurance plans. Therefore in addition to the service tax and education cess being currently levied on the risk cover, i.e. on the mortality charges, from the effective date service tax will also be additionally levied on charges such as premium allocation, policy administration, fund management, switching and miscellaneous charges.
This levy of service tax, education cess and higher secondary education cess is in accordance with Section 65(105)(zx) of the Finance Act 1994, as amended by Finance (No.2) Act 2004 and Section 65(105)(zzzzf) of Finance Act 2008 and which is subject to change from time to time.Tax benefits are subject to change in tax laws,. You are advised to consult your tax advisor for details.
Reference No.: KLI/09-10/E-WEB/094
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Life insurance gives an individual’s family the financial security needed and protects them from uncertainties and eventualities of life.

ULIPs or Unit Linked Insurance Plans for Kotak Life Insurance gives an individual the security of life insurance along with wealth creation opportunities. One can benefit from flexibility, liquidity, strategic savings, tax benefits and fund options that are inherent in a ULIP.

Retirement Plans from Kotak Life Insurance helps provide an individual with the financial security to lead a comfortable lifestyle in his post retirement years. Make use of the retirement calculator to assess your retirement options wisely.

Savings and Investment Plans from kotak Life Insurance are customized plans that help an individual achieve his / her long-term goals through smart financial planning.

Children Plans from Kotak Life Insurance help an individual secure his / her child’s financial future so that in future the child is able to fulfill every dream and aspiration without any hindrance

Group Life Insurance Plans from Kotak Life Insurance can help address the needs of both employees and employers, to secure their financial future.
Kotak Mahindra Old Mutual Life Insurance Ltd. A joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc.
9th floor, Godrej Coliseum, Behind Everard Nagar, Sion (E), Mumbai - 400 022

All rights reserved. Registered with Insurance Regulatory & Development Authority (IRDA) as Life Insurance Company. Regn. No. 107.
Insurance is the subject matter of the solicitation
Tax benefits available with life insurance are as per the Income Tax Act, 1961, and are subject to amendments made thereto from time to time.
For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.