UNDER SECTION (10)

Exemption from income tax on Maturity / Death Claims proceeds of Section 10 (10D)
Under the provisions of section 10 (10D) of the Law on Income Tax 1961, Maturity /Death claims the life insurance product, including the sum allocated by way of bonus onsuch policy (which amount not to return in Jeevan Aadhar Insurance plan in case of disability depend on the person dies or amount received under a Keyman Insuranceplan) is exempt from income tax. However, any sum (not including the premium paid by the assessee) received under an insurance policy issued on the date 1 April 2003 for which the premium payable for any year during the term of the policy exceeds 20% of the sum of real capital security will no longer be exempt under this section.

flexibility

ulips be given much flexibility to the policyholder. the option of switching is a provisionthat flexibility. insured are also allowed to make an additional lump sum contribution at any time. risk coverage will remain the same, but the amount goes into the investmentfund will change. Top-Up is the term used to refer to the increased contribution policy for investment. It could not be charged a top-up. the guidelines stipulate that the top IRDA -until only allowed if the premium is paid regularly updated and also that if the amount ofrecharge is more than25% of the regular premium paid to date, life insurance will be increased 1.25 fold excess of the amount of recharging. there will be a lock in period of three years for each amount of recharge, expect for the last 3 years of the policy.
· The policy holder may be authorized to redirect the current premium on any background.
· The policy holder can not pay the premium in one year, subject to certain conditions. if that happens, no new units will add to its bottom, but some units will be reduced to pay for annual expenses for housing, administration, fund management, etc.. this is calledHOLIDAY PREMIUM.