LIFE IN­SUR­ANCE PRO­CEEDS

Deccan Chronicle - - Money -

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

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