As you know the income tax benefit on life insurance premium paid for a life insurance policy is an important additional advantage of life insurance.
As per Section 80C of the Income Tax Act, any amount paid to an insurer to buy or to keep a life insurance policy in force can be claimed as a deduction from gross total income by the policy holder. This benefit can Only be taken by an Individual or a Hindu Undivided family (“HUF”).
Point to be noted here is that, this tax benefit can be claimed only if insured is self, spouse or kid(s). So you can’t take tax benefit on the policy of parents, siblings or friends.
The maximum amount that can be claimed as deduction under section 80C is Rs 1,50,000 as per current income tax laws.