LIFE INSURANCE PROCEEDS

Proceeds – whether through policy maturity or surrender – from ULIPs, endowment plans, cashback plans and similar investment-linked life insurance are tax-free in hands of the investor, subject to limits defined in Section 10(10D). Despite the high tax efficiency, high charges on these products lead to low returns, especially in the case of premature surrender.

Tax Efficiency & Rating: 2/5 Returns