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.
Whole life serves a purpose, but not everybody needs it. If you need only temporary coverage that lasts until you've paid off debts or seen your kids through college, then term life insurance is your best bet. It's cheap for young and healthy people. Whole life can be a good option if you: Have a large estate that will be subject to taxes when you die.