LIC Tax Benefits Explained: Section 80C and 10(10D) in Plain Terms

Premiums paid for yourself, spouse and children qualify under Section 80C within the overall limit, but only up to 10% of the sum assured for policies issued after April 2012 (15% for specified disabilities and illnesses).

Maturity and death proceeds are exempt under Section 10(10D) provided the same premium-to-sum-assured test is met over the whole term. Buy a low cover with a very high premium and you can lose the exemption.

Recent budgets capped the exemption for high-premium non-ULIP policies aggregating above ₹5 lakh of annual premium. Most household policies are nowhere near that line.

Under the new tax regime 80C is not available, so buy insurance for the cover and the certainty, not for the deduction.

Nothing here is tax advice for your specific case — check with your CA, and we are happy to speak to them with you.