For most Indian buyers, life insurance is a two-scoop sundae that offers tax deduction on the premium under Section 80C and tax-free income under Section 10(10D). And yes, on top of all this, there is a small cherry of life cover for the policyholder. This cherry just got bigger. The budget has proposed that an insurance plan will be eligible for tax deduction and the income will be tax-free only if it covers the policyholder for 10 times the annual premium. The clause, which brings into focus the core objective of an insurance plan, is meant for traditional policies since Ulips already offer 10 times the cover.

More...