Tax payers can claim tax deduction of up to Rs 1,50,000 on premiums paid towards life insurance policies under section 80C of the income tax act. premiums paid for whole life insurance policies, term life insurance polices and ULIPs are eligible for tax benefits under this section. Deductions can be claimed on premiums paid for insuring your family members (self, spouse and children).

It must be noted that the benefits can only be availed by an individual or a hindu undivided family for the premiums paid. To claim the deduction for a particular year, the gross amount of premium must be paid in that particular financial year itself.