LIC Protection Plus tax treatment

Tax treatment of Protection Plus

Same §80C and §10(10D) treatment as other ULIPs: premiums deductible up to ₹1.5L/yr (old regime only); maturity exempt if aggregate annual ULIP premium ≤ ₹2.5L; above this cap, LTCG at 10% without indexation (Finance Act 2021). Death benefits always exempt. Fund switches not taxable. Higher premiums are common in protection-weighted ULIPs — verify aggregate premium against the ₹2.5L threshold before buying.

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.