Life insurance premium qualifies for 80C deduction up to ₹1.5L per year - BUT only if the sum assured is at least 10x annual premium (for policies issued after April 1, 2012). The calculator checks your policy's eligibility, computes tax savings, and shows the after-tax effective cost of insurance.
When to use this
Use when: evaluating an LIC / HDFC Life / ICICI Pru / SBI Life policy your agent is pitching, computing tax savings on existing policies, comparing term insurance + ELSS vs traditional endowment policy (almost always the term + ELSS wins), filing ITR with 80C disclosures.
Frequently Asked Questions
What's the 10x sum assured rule?
For policies issued on / after April 1, 2012: the policy's sum assured must be at least 10x the annual premium to qualify for 80C deduction. Example: ₹10K annual premium needs ₹1L sum assured minimum. Older policies (pre-April 2012) had a 5x rule. The calculator flags policies that don't qualify.
Does ULIP qualify for 80C?
Yes - ULIPs (Unit-Linked Insurance Plans) qualify for 80C if they meet the 10x rule. But ULIP tax treatment changed in Budget 2021: for ULIPs with annual premium > ₹2.5L, the maturity proceeds are taxable as capital gains. Below ₹2.5L premium, maturity stays tax-free under Section 10(10D).
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