LIC Jeevan Umang tax treatment

Tax treatment of Jeevan Umang

Premiums qualify for §80C deduction up to ₹1.5L/year (SA must be ≥ 10× annual premium — Jeevan Umang easily meets this). Annual survival benefit (the 8% income) is tax-free under §10(10D). Death benefit is also tax-free. At maturity (age 100): the SA + FAB + vested SRBs paid as maturity value is tax-free if the 10× SA condition is met, which it always is for Jeevan Umang. There is no TDS on survival benefit payments for Indian residents.

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.