Employeeâs contribution â Section 80CCD (1) Allowed to an Individual who makes deposits to his/her Pension account. Maximum deduction allowed is 10% of salary (in case of taxpayer being an employee) or 10% of gross total income (in case of tax payer being self-employed) or Rs 1, 50,000 whichever less is.
This applies to current, former and retired employees. Premiums you pay for employees' group life insurance that is not group term insurance or optional dependent life insurance are also a taxable benefit.
Term Life Insurance provides benefits only upon the death of the insured individual during the term. There are many reasons why a individual may chose to purchase a term policy instead of a whole life policy. The answer to your question is tied into the reasons why a individual purchased the coverage.