Pay tax on money received from surrendered life insurance policy? Find out
There are some Unit Linked Plans available which provide customers the opportunity to effect partial withdrawals from time to time. You might want to understand these plans better as some of these might be able to meet most of your needs.
Is it possible to combine two policies of the same company and create a new policy? An LIC agent told me he can combine two plans and customise a policy for me. I want a policy that will give me a lumpsum once a year and a monthly income after I retire. Is there any such product that offers both these options together?—Mohan Bhatt
Yes, it is possible to buy two different policies which, in combination, meet your specific needs. By combining, the LIC agent will ensure that you can pay premium for both policies together. Please be aware that from a contractual obligation standpoint, both policies continue to be distinct. As per your precise need, you may need to purchase an annual income policy and a pension plan. The annual income policy, after the completion of its premium paying term, will give you a lump sum once every year, while the pension plan will help you create a corpus with which you can purchase a monthly annuity post retirement. Currently, no single product can fulfil both these requirements.
Having said this, there are some Unit Linked Plans available which provide customers the opportunity to effect partial withdrawals from time to time. You might want to understand these plans better as some of these might be able to meet most of your needs.
If I surrender my life insurance policy and get the money, will I have to pay tax on it?—Poornam Bhatia
If your insurance policy was eligible for Sec 10 (10D) benefit while it was in-force, then on surrender you won't have to pay any tax on it.
Is it better to buy a term plan with personal accident rider or a separate personal accident plan?—Kaustabh Singh
Watch This Zee Business Video Here:
My recommendation will be to buy a single plan with both the benefits.
BY: Rushabh Gandhi
(The writer is deputy CEO, IndiaFirst Life Insurance)
SOURCE: DNA Money
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
07:35 PM IST