LIC Jan Suraksha tax treatment

Tax treatment of Jan Suraksha

Premiums paid qualify for deduction under §80C (within the aggregate ₹1.5L ceiling). Maturity proceeds are exempt under §10(10D) only if the annual premium does not exceed 10% of the basic sum assured — for a ₹2L policy this threshold is ₹20,000/year. Term-12 policies have annual premiums above ₹26,000 (all ages), so their maturity proceeds may be fully taxable as income. Term-15 and term-20 policies generally stay under the threshold. Verify the exact tax treatment with a chartered accountant before purchase, especially for short-term policies.

The 10× sum assured rule

For policies issued after 1 April 2012, both §80C deduction on premiums and §10(10D) exemption on maturity require the sum assured to be at least 10× the annual premium. Jeevan Labh's standard premium tables comfortably meet this — only watch out at very high entry ages where premium-to-SA ratios compress.

What changes from FY 2023-24

For non-ULIP life insurance policies issued on or after 1 April 2023 with annual premium above ₹5 lakh, maturity proceeds become taxable. Jeevan Labh premiums for typical sum-assured ranges (₹2 L–₹20 L) sit well below that threshold, so this rule rarely bites — but worth confirming for high-SA policies.