How are ULIPs taxed at maturity?

Investments can be the most challenging yet crucial part of your financial planning. Due to the fear of risks associated with investments, many of you might ignore the benefits of investment vehicles. The right investment product can allow you to build a substantial corpus, generate relatively high returns, as well as reduce your tax liability. While there are many investment tools in the market that can offer these benefits separately, a Unit Linked Insurance Plan (ULIP) can club all the benefits under a single integrated plan. One of the major advantages offered by a ULIP policy is its tax benefits.

Under a ULIP policy, you can claim tax deductions on the premium as well as maturity proceeds. While the premium can be paid in return for the life cover, the maturity proceeds can protect the financial needs of your loved ones in your absence. Since a ULIP policy falls under the Exempt- Exempt- Exempt (EEE) category, the premium and maturity proceeds can be exempted from taxes. Let’s go through the tax benefits applicable to the premium and maturity proceeds in accordance with Section 80C and Section 10(10D) of the Income Tax Act, 1961 as mentioned below:

  1. Premium

According to Section 80C, you can be eligible to claim a deduction up to Rs. 1,50,000 on your taxable income.

  1. Maturity benefit

After the ULIP policy matures, you can receive a maturity payout. The amount granted on the maturity date can be tax-free in accordance with Section 10(10D).

While the tax exemptions of the premium can be straightforward, the applicable ULIP benefits on the maturity proceeds can be quiet complex. If you wish to claim deductions on the maturity proceeds, you should fulfill the following conditions as given below:

  • When you purchase a ULIP policy before 1st April 2012

If the premium value is above 10% of the total sum assured value, you can claim a deduction that can be equal to 10% of the total sum assured value.

  • When you purchase a ULIP policy after 1st April 2012

If the premium value is above 20% of the total sum assured value, you can claim a deduction that can be equal to 20% of the total sum assured value.

NOTE: If the premium value is more than the percentage provided under your ULIP policy, the whole maturity amount can be added to your income in the year during which the ULIP policy has been surrendered.

As a policyholder, you should be able to identify the amount on which tax deductions are applicable. The income tax department has laid down guidelines, which state ‘any amount paid to keep in force.’ With these guidelines, you can understand that your ULIP policy can be applicable for tax deductions. Hence, you should include service tax and other applicable charges at the time of deduction.

Typically, a ULIP policy should be kept in force for a duration of five years to receive tax benefits. If you continue the ULIP policy until the lock-in period, you should pay the premiums regularly based on the premium payment mode. As a policyholder, you can make the premium payment quarterly, monthly, half-yearly, or annually. There can be times when you might want to surrender the ULIP policy when you might be unable to afford the premium amount. If you discontinue the ULIP policy before the lock-in period, you might not be able to make the most of the tax benefits. In addition to this, if your insurer had allowed any deduction in the previous year, it can get added to your income after the ULIP policy is terminated.

To conclude, a ULIP investment not only helps you to save more tax as well as charges you minimally. However, see to it that you do not get lured by tax benefits and low premiums. Choose the right ULIP policy based on your financial requirements and risk appetite. Moreover, stay invested for a long time to reap maximum tax benefits over the due course of the ULIP policy.

530 thoughts on “How are ULIPs taxed at maturity?”

  1. Avatar

    Excellent read, I just passed this onto a colleague who was doing a little research on that. And he actually bought me lunch because I found it for him smile Therefore let me rephrase that: Thanks for lunch! “It is impossible to underrate human intelligence–beginning with one’s own.” by Henry Adams.

  2. Avatar

    What i don’t understood is actually how you are not actually much more well-liked than you may be right now. You’re very intelligent. You realize therefore significantly relating to this subject, produced me personally consider it from so many varied angles. Its like women and men aren’t fascinated unless it’s one thing to accomplish with Lady gaga! Your own stuffs outstanding. Always maintain it up!

  3. Avatar

    I precisely desired to thank you very much once more. I am not sure what I might have undertaken without the type of tips provided by you concerning such a field. Previously it was a hard crisis for me, but seeing a specialized avenue you solved the issue made me to leap over joy. Now i’m thankful for this help and thus pray you find out what an amazing job you have been putting in educating men and women via your web site. Most probably you have never met all of us.

  4. Avatar

    It is the best time to make some plans for the future and it is time to be happy. I have read this post and if I could I wish to suggest you some interesting things or suggestions. Perhaps you can write next articles referring to this article. I want to read more things about it!

  5. Avatar

    I beloved up to you will receive carried out right here. The comic strip is attractive, your authored material stylish. however, you command get bought an edginess over that you would like be handing over the following. sick undoubtedly come more before once more as exactly the similar nearly a lot ceaselessly within case you shield this hike.

  6. Avatar

    What i do not understood is actually how you are not actually much more well-liked than you might be right now. You are so intelligent. You realize thus considerably relating to this subject, produced me personally consider it from a lot of varied angles. Its like men and women aren’t fascinated unless it’s one thing to accomplish with Lady gaga! Your own stuffs great. Always maintain it up!

  7. Avatar

    Oh my goodness! an amazing article dude. Thanks Nevertheless I am experiencing problem with ur rss . Don’t know why Unable to subscribe to it. Is there anybody getting equivalent rss problem? Anyone who is aware of kindly respond. Thnkx

  8. Avatar

    Please let me know if you’re looking for a author for your weblog. You have some really good posts and I think I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please shoot me an e-mail if interested. Thanks!

  9. Avatar

    Its such as you learn my thoughts! You seem to know a lot approximately this, like you wrote the ebook in it or something. I believe that you simply could do with a few p.c. to drive the message house a little bit, however other than that, this is wonderful blog. A great read. I’ll certainly be back.

  10. Avatar

    I’m curious to find out what blog platform you happen to be working with? I’m having some small security issues with my latest site and I’d like to find something more safeguarded. Do you have any solutions?

  11. Avatar

    There are some fascinating time limits in this article however I don’t know if I see all of them middle to heart. There is some validity however I will take hold opinion till I look into it further. Good article , thanks and we want more! Added to FeedBurner as well

  12. Avatar

    Hi there! This is kind of off topic but I need some guidance from an established blog. Is it very hard to set up your own blog? I’m not very techincal but I can figure things out pretty fast. I’m thinking about creating my own but I’m not sure where to start. Do you have any tips or suggestions? Cheers

  13. Avatar

    This web page is mostly a walk-by for the entire data you needed about this and didn’t know who to ask. Glimpse here, and also you’ll undoubtedly discover it.

  14. Avatar

    This is very interesting, You are a very skilled blogger. I’ve joined your rss feed and look forward to seeking more of your great post. Also, I’ve shared your website in my social networks!

  15. Avatar

    Thank you for sharing superb informations. Your web site is so cool. I’m impressed by the details that you’ve on this website. It reveals how nicely you perceive this subject. Bookmarked this website page, will come back for more articles. You, my pal, ROCK! I found simply the information I already searched everywhere and simply couldn’t come across. What a perfect website.

  16. Avatar

    Thanx for the effort, keep up the good work Great work, I am going to start a small Blog Engine course work using your site I hope you enjoy blogging with the popular BlogEngine.net.Thethoughts you express are really awesome. Hope you will right some more posts.

  17. Avatar

    Thanks for ones marvelous posting! I genuinely enjoyed reading it, you may be a great author.I will be sure to bookmark your blog and will often come back in the foreseeable future. I want to encourage one to continue your great posts, have a nice evening!

  18. Avatar

    Today, while I was at work, my cousin stole my iPad and tested to see if it can survive a twenty five foot drop, just so she can be a youtube sensation. My iPad is now destroyed and she has 83 views. I know this is completely off topic but I had to share it with someone!

  19. Avatar

    Instagram downloader is a web application that is free to use. So using our free Instagram downloader tool you can download any public/private Instagram photos, Instagram videos, IGTV videos, profile pictures & Instagram stories directly to your device (iPhone, Android, Pc or Mac).

  20. Avatar

    I just could not depart your site before suggesting that I extremely enjoyed the standard info a person provide for your visitors? Is going to be back often in order to check up on new posts

  21. Avatar

    Hello! This is my first visit to your blog! We are a group of volunteers and starting a new initiative in a community in the same niche. Your blog provided us beneficial information to work on. You have done a marvellous job!

  22. Avatar

    hello!,I really like your writing very so much! proportion we keep up a correspondence more approximately your article on AOL? I require an expert in this space to resolve my problem. Maybe that is you! Taking a look forward to see you.

  23. Avatar

    What i do not realize is in reality how you are now not really a lot more neatly-preferred than you may be now. You’re so intelligent. You know therefore significantly relating to this topic, made me personally consider it from a lot of numerous angles. Its like men and women aren’t involved until it¦s something to do with Woman gaga! Your individual stuffs excellent. Always handle it up!

  24. Avatar

    Excellent post. I was checking constantly this blog and I am impressed! Extremely useful info specifically the last part 🙂 I care for such information much. I was seeking this particular information for a long time. Thank you and good luck.

  25. Avatar

    Howdy! Would you mind if I share your blog with my facebook group? There’s a lot of people that I think would really appreciate your content. Please let me know. Thanks

  26. Avatar

    Great write-up, I?¦m regular visitor of one?¦s site, maintain up the excellent operate, and It’s going to be a regular visitor for a lengthy time.

  27. Avatar

    A lot of thanks for each of your hard work on this web page. Kim really likes going through investigation and it’s really easy to understand why. Many of us know all of the dynamic method you make invaluable steps on this web blog and as well as improve participation from people on that idea so our girl is certainly learning a lot of things. Have fun with the remaining portion of the new year. You are conducting a pretty cool job.

  28. Avatar

    Hi there just wanted to give you a quick heads up and let you know a few of the pictures aren’t loading properly. I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same results.

  29. Avatar

    Please let me know if you’re looking for a writer for your weblog. You have some really good posts and I believe I would be a good asset. If you ever want to take some of the load off, I’d really like to write some content for your blog in exchange for a link back to mine. Please shoot me an e-mail if interested. Thank you!

  30. Avatar

    It¦s truly a great and helpful piece of information. I am satisfied that you shared this useful information with us. Please stay us informed like this. Thanks for sharing.

  31. Avatar

    Wow that was unusual. I just wrote an really long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say wonderful blog!

  32. Avatar

    Hi there! Someone in my Facebook group shared this website with us so I came to check it out. I’m definitely loving the information. I’m book-marking and will be tweeting this to my followers! Great blog and great style and design.

  33. Avatar

    I am no longer certain where you’re getting your info, but good topic. I must spend some time finding out more or understanding more. Thank you for excellent info I was searching for this info for my mission.

  34. Avatar

    I precisely wished to thank you very much once more. I’m not certain the things that I would have handled without these secrets discussed by you over such a question. It absolutely was a very difficult matter in my circumstances, but taking note of your skilled strategy you treated it forced me to leap for gladness. I will be grateful for this service and thus trust you know what an amazing job that you’re accomplishing educating the mediocre ones using your webpage. I’m certain you’ve never got to know any of us.

  35. Avatar

    Pretty nice post. I simply stumbled upon your weblog and wanted to mention that I’ve really enjoyed browsing your blog posts. After all I will be subscribing in your feed and I am hoping you write once more soon!

  36. Avatar

    I loved as much as you’ll receive carried out right here. The caricature is tasteful, your authored material stylish. nonetheless, you command get got an impatience over that you would like be handing over the following. sick surely come further beforehand once more as precisely the same just about very regularly inside case you shield this hike.

  37. Avatar

    There are actually lots of particulars like that to take into consideration. That could be a great level to bring up. I provide the ideas above as general inspiration however clearly there are questions like the one you bring up the place the most important factor might be working in trustworthy good faith. I don?t know if best practices have emerged round issues like that, but I am certain that your job is clearly identified as a fair game. Each boys and girls really feel the impression of just a moment’s pleasure, for the remainder of their lives.

  38. Avatar

    There are some interesting closing dates in this article however I don’t know if I see all of them center to heart. There may be some validity but I’ll take maintain opinion till I look into it further. Good article , thanks and we want extra! Added to FeedBurner as effectively

  39. Avatar

    Howdy would you mind sharing which blog platform you’re working with? I’m looking to start my own blog soon but I’m having a difficult time choosing between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design and style seems different then most blogs and I’m looking for something completely unique. P.S Apologies for being off-topic but I had to ask!

  40. Avatar

    certainly like your website however you need to test the spelling on quite a few of your posts. Many of them are rife with spelling problems and I to find it very bothersome to tell the reality on the other hand I¦ll certainly come again again.

  41. Avatar

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across. It extremely helps make reading your blog significantly easier.

  42. Avatar

    I have been surfing online more than 3 hours today, but I by no means discovered any attention-grabbing article like yours. It is lovely value enough for me. In my view, if all site owners and bloggers made excellent content as you did, the web shall be a lot more helpful than ever before.

  43. Avatar

    What i do not understood is in fact how you’re now not actually much more smartly-favored than you might be now. You are so intelligent. You understand therefore significantly on the subject of this topic, produced me individually believe it from a lot of varied angles. Its like men and women are not fascinated unless it is something to accomplish with Lady gaga! Your personal stuffs nice. At all times take care of it up!

  44. Avatar

    After I initially commented I clicked the -Notify me when new feedback are added- checkbox and now every time a remark is added I get four emails with the identical comment. Is there any approach you may remove me from that service? Thanks!

  45. Avatar

    Very nice post. I just stumbled upon your blog and wanted to say that I have truly enjoyed browsing your blog posts. After all I’ll be subscribing to your feed and I hope you write again very soon!

  46. Avatar

    Thanks for another informative blog. Where else could I get that type of info written in such a perfect way? I have a project that I’m just now working on, and I’ve been on the look out for such information.

  47. Avatar

    I’ve been exploring fοr a llittle f᧐r ɑny high quality
    articles or weblog posts օn this қind of space . Exploring in Yahoo Ӏ ultimately stumbled ᥙpon tһis web
    site. Reading tis informɑtion So i’m satisfied tο express thnat I’ve a vеry ցood uncanny
    feeling Ι discovered ϳust whаt I neеded. I most сertainly ѡill maқe cеrtain to do noot
    disregard tuis web site ɑnd provіdes it a glance regularly.

    Μy blog coin master free spins link

  48. Avatar

    Very interesting information!Perfect just what I was searching for! “Outside of a dog, a book is man’s best friend. Inside of a dog it’s too dark to read.” by Groucho Marx.

  49. Avatar

    When I originally commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the same comment. Is there any way you can remove me from that service? Thanks!

  50. Avatar

    Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your blog? My website is in the exact same niche as yours and my users would genuinely benefit from some of the information you provide here. Please let me know if this ok with you. Appreciate it!

  51. Avatar

    Thanks for another wonderful article. Where else could anybody get that type of info in such an ideal way of writing? I have a presentation next week, and I am on the look for such information.

  52. Avatar

    This blog is definitely rather handy since I’m at the moment creating an internet floral website – although I am only starting out therefore it’s really fairly small, nothing like this site. Can link to a few of the posts here as they are quite. Thanks much. Zoey Olsen

  53. Avatar

    hello there and thanks for your information – I have certainly picked up anything new from proper here. I did on the other hand experience several technical points the usage of this web site, since I skilled to reload the website a lot of instances prior to I may just get it to load correctly. I were puzzling over if your web host is OK? No longer that I am complaining, however slow loading cases occasions will sometimes impact your placement in google and can damage your high quality score if ads and ***********|advertising|advertising|advertising and *********** with Adwords. Well I am adding this RSS to my email and can glance out for a lot extra of your respective intriguing content. Make sure you update this again very soon..

  54. Avatar

    What i do not realize is in truth how you’re no longer actually a lot more smartly-favored than you may be right now. You are so intelligent. You understand thus considerably relating to this topic, produced me personally imagine it from so many various angles. Its like men and women don’t seem to be interested unless it is something to do with Girl gaga! Your personal stuffs outstanding. All the time take care of it up!

  55. Avatar

    Woah! I’m really loving the template/theme of this blog. It’s simple, yet effective. A lot of times it’s very hard to get that “perfect balance” between superb usability and visual appeal. I must say you have done a fantastic job with this. In addition, the blog loads super quick for me on Safari. Superb Blog!

  56. Avatar

    Hiya, I am really glad I’ve found this info. Today bloggers publish just about gossips and web and this is really annoying. A good website with interesting content, that’s what I need. Thanks for keeping this website, I’ll be visiting it. Do you do newsletters? Cant find it.

  57. Avatar

    My brother recommended I may like this blog. He was totally right. This put up truly made my day. You cann’t believe just how much time I had spent for this info! Thanks!

  58. Avatar

    I have been on the anti-depressant nardil for 10 years and it cured my depression and social anxiety. Previously I had tried all the SSRI’s without success. Nardil simply works and it saved my life.

  59. Avatar

    Hi, Neat post. There is an issue together with your web site in web explorer, may check thisK IE still is the marketplace chief and a huge portion of other people will pass over your excellent writing because of this problem.

  60. Avatar

    Hi there! This post couldn’t be written any better! Reading through this post reminds me of my previous room mate! He always kept talking about this. I will forward this article to him. Pretty sure he will have a good read. Thank you for sharing!

  61. Avatar

    it was a new wonderful chance to pay a visit to this kind of web page and My partner and i am joyful to know. thank you to get giving us a opportunity to have this option.

  62. Avatar

    Good website! I truly love how it is simple on my eyes and the data are well written. I’m wondering how I could be notified whenever a new post has been made. I’ve subscribed to your RSS feed which must do the trick! Have a nice day!

  63. Avatar

    An fascinating discussion is price comment. I think that you need to write more on this topic, it might not be a taboo subject but generally individuals are not enough to speak on such topics. To the next. Cheers

  64. Avatar

    What i do not understood is actually how you’re not really much more well-liked than you may be right now. You are very intelligent. You realize therefore significantly relating to this subject, made me personally consider it from numerous varied angles. Its like men and women aren’t fascinated unless it’s one thing to accomplish with Lady gaga! Your own stuffs great. Always maintain it up!

  65. Avatar

    Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You obviously know what youre talking about, why waste your intelligence on just posting videos to your blog when you could be giving us something enlightening to read?

  66. Avatar

    We stumbled over here by a different website and thought I may as well check things out. I like what I see so i am just following you. Look forward to finding out about your web page repeatedly.

  67. Avatar

    You actually make it seem so easy together with your presentation but I in finding this topic to be really one thing which I feel I’d never understand. It sort of feels too complex and extremely huge for me. I am looking forward for your next submit, I?¦ll try to get the hang of it!

  68. Avatar

    I in addition to my pals have been analyzing the nice tips and hints from your website and so then got a terrible suspicion I never expressed respect to the web blog owner for those strategies. All the people became absolutely glad to study them and have now certainly been taking pleasure in these things. Thanks for being quite helpful and for finding this sort of superior useful guides most people are really desirous to learn about. My honest apologies for not expressing gratitude to earlier.

  69. Avatar

    Hey very nice web site!! Man .. Excellent .. Amazing .. I will bookmark your website and take the feeds also…I’m happy to find so many useful information here in the post, we need work out more techniques in this regard, thanks for sharing. . . . . .

  70. Avatar

    The very heart of your writing whilst sounding agreeable originally, did not really work very well with me after some time. Somewhere within the sentences you actually were able to make me a believer unfortunately only for a short while. I however have a problem with your leaps in logic and you might do well to help fill in all those breaks. In the event you can accomplish that, I will definitely end up being impressed.

  71. Avatar

    I’m extremely impressed with your writing skills as well as with the layout on your blog. Is this a paid theme or did you modify it yourself? Either way keep up the nice quality writing, it is rare to see a great blog like this one these days..

  72. Avatar

    What’s Happening i’m new to this, I stumbled upon this I have found It absolutely useful and it has helped me out loads. I hope to contribute & help other users like its helped me. Great job.

  73. Avatar

    Nice blog here! Also your site loads up fast! What host are you using? Can I get your affiliate link to your host? I wish my site loaded up as quickly as yours lol

  74. Avatar

    Fantastic blog! Do you have any suggestions for aspiring writers? I’m planning to start my own blog soon but I’m a little lost on everything. Would you propose starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m totally confused .. Any recommendations? Thanks a lot!

  75. Avatar

    Thank you, I have just been searching for information approximately this subject for a while and yours is the best I have found out till now. But, what concerning the bottom line? Are you certain in regards to the supply?

  76. Avatar

    Thank you so much for giving everyone remarkably pleasant possiblity to discover important secrets from this blog. It really is so useful and also jam-packed with a good time for me personally and my office colleagues to visit your website more than three times in a week to find out the fresh items you have. And definitely, we are usually astounded considering the staggering advice served by you. Certain 2 areas in this article are rather the most impressive we have all ever had.

  77. Avatar

    I’m not sure exactly why but this weblog is loading extremely slow for me. Is anyone else having this issue or is it a issue on my end? I’ll check back later on and see if the problem still exists.

  78. Avatar

    This is the right blog for anyone who wants to find out about this topic. You realize so much its almost hard to argue with you (not that I actually would want…HaHa). You definitely put a new spin on a topic thats been written about for years. Great stuff, just great!

  79. Avatar

    Hello, i think that i noticed you visited my weblog so i came to “go back the prefer”.I’m trying to in finding issues to improve my web site!I assume its good enough to use a few of your ideas!!

  80. Avatar

    After examine just a few of the blog posts in your web site now, and I truly like your method of blogging. I bookmarked it to my bookmark website listing and will probably be checking back soon. Pls try my web site as well and let me know what you think.

  81. Avatar

    There are definitely a whole lot of details like that to take into consideration. That may be a nice level to carry up. I offer the ideas above as general inspiration however clearly there are questions just like the one you convey up where a very powerful thing will be working in trustworthy good faith. I don?t know if finest practices have emerged round things like that, however I am sure that your job is clearly identified as a good game. Both boys and girls really feel the impact of only a moment’s pleasure, for the rest of their lives.

  82. Avatar

    Please let me know if you’re looking for a article author for your blog. You have some really good posts and I think I would be a good asset. If you ever want to take some of the load off, I’d really like to write some articles for your blog in exchange for a link back to mine. Please shoot me an e-mail if interested. Kudos!

  83. Avatar

    Excellent post. I was checking constantly this blog and I’m impressed! Very useful info specifically the last part 🙂 I care for such information much. I was seeking this particular info for a very long time. Thank you and best of luck.

  84. Avatar

    Good day! This is kind of off topic but I need some help from an established blog. Is it tough to set up your own blog? I’m not very techincal but I can figure things out pretty quick. I’m thinking about making my own but I’m not sure where to begin. Do you have any points or suggestions? Cheers

  85. Avatar

    I’ve been browsing on-line more than three hours these days, but I never discovered any attention-grabbing article like yours. It¦s lovely worth enough for me. Personally, if all site owners and bloggers made just right content as you did, the net will probably be a lot more helpful than ever before.

  86. Avatar

    Hello! Do you use Twitter? I’d like to follow you if that would be okay. I’m undoubtedly enjoying your blog and look forward to new updates.

  87. Avatar

    Great V I should definitely pronounce, impressed with your site. I had no trouble navigating through all tabs as well as related information ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Quite unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your customer to communicate. Nice task..

  88. Avatar

    Today, I went to the beach with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is entirely off topic but I had to tell someone!

  89. Pingback: priligy mexico over counter

  90. Pingback: hydroxychloroquine for covid

  91. Pingback: hydroxychloroquine dosing norwegian malarial

  92. Pingback: low priced ivermectil in usa

  93. Pingback: stromectol online

  94. Pingback: priligy physician samples

  95. Pingback: where to buy hydroxychloroquine online

  96. Pingback: buy prednisone online free shipping

  97. Pingback: coffee and stromectol

  98. Pingback: ivermect medscape

Leave a Reply