8 replies on this article “IMPACT OF DIRECT TAX CODE ON INSURANCE POLICY”

1. Karthik says:

   January 15, 2012 at 2:35 am

   Thanks Ashal…

   Reply
2. ashal jauhari says:

   January 14, 2012 at 11:22 pm

   Dear Karthik, what you have answered is the current system. The proposed system under DTC (frankly I do not know when the DTC ‘ll be implemented & what ‘ll be it’s final shape) is – the annualized prem. should be equal or less than 5% of the sum assured in a life insurance policy to receive maturity amount tax free. In Simple words, the Sum assured should be at least 20 times multiple of your annualized prem.

   Presently as DTC is not in sight, please do not panic for it.

   Thanks

   Ashal

   Reply
3. Karthik says:

   January 14, 2012 at 5:04 am

   Hi Yashodhan,

   Annual Premium should be equal or lesser than 20% of the Insurance cover.
   In other words, 5 times or more of the annual premium paid.

   You had said “my insurance cover is only 5 times the annual premium” which perfectly satisfies your basic eligibility.

   For eg:
   1. 15K Term Plan Annual Premium for greater than 75K sum assured is eligible.
   2. 50K ULIP Annual premium for greater than 2.5 Lakhs sum assured is eligible

   Ashal, Please correct me if I am wrong

   Thanks

   Reply
4. ashal jauhari says:

   December 24, 2011 at 1:57 am

   Dear Victor hall, Please do understand, no body can predict, what ‘ll be the final shape of DTC? Hence worrying for your policies at this stage is not good for you. Just relax & wait for the outcome of the parliament’s take on DTC as an ACT.

   Thanks

   Ashal

   Reply
5. victor hall says:

   December 23, 2011 at 11:58 am

   How will that affect the insurance policy?

   Reply
6. Narayan says:

   December 23, 2011 at 9:03 am

   Insurance is a confusing subject and for all these years it has been sold as a tax saving instrument than a risk protection tool. Having sold insurance as a tax saving product; the onus is actually on the insurers to inform existing policyholders on where does their policy stand vis-a-vis tax status whenever DTC comes into effect. There has also been talk within the various proposals under the revised draft DTC EEE contributed for all presently issued policies. For new policies issued after DTC implementation, only ‘pure life insurance’ products would be eligible for EEE.
   Narayan

   Reply
7. ashal jauhari says:

   December 23, 2011 at 2:46 am

   Dear Yashodhan, in addition to what dear Jitendra Solanki has shared with you. Please do not worry for DTC as of now. It’s merely a talk as on date & there is a long way to walk before it becomes a path. In all probability Govt. is going to miss it’s deadline i.e. 1st April 2012. So it may be implemented from 1st April 2013 if at all it’s passed by parliament as an act.

   Even then we ‘ll have enough time to correct our mistakes.

   Thanks

   Ashal

   Reply
8. jitendra solanki says:

   December 22, 2011 at 6:57 pm

   Dear Yashodan,

   This write up will answer all your queries.

   http://www.moneylife.in/article/does-your-insurance-policy-really-give-you-tax-benefits/22109.html

   Reply

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