Under section 80C of the income tax act, a deduction of up to Rs 1,50,000 can be claimed on premiums paid towards life insurance. All premiums paid for life insurance, including those for ULIPs, are eligible for tax benefits under section 80C of the income tax act. You can also claim tax deductions for the premiums paid for insuring your family members (self, spouse and children). The limit for claiming this benefit is Rs 1,50,000.

Tax benefits can only be availed by an individual or a hindu undivided family for premium paid for a life insurance policy. It must be noted that to claim the deduction for a particular year, the gross amount of premium should be paid during that particular financial year itself.