Children's life insurance plans, are wonderful tax-saving tools. You are allowed to write off the premiums you pay towards it when calculating taxable income. This exemption is defined in Section 80 (C) of the Income Tax Act.
Life insurance follows the Triple E or Exempt-Exempt-Exempt principle when it comes to tax matters. This is to say, your insurance premiums are tax-exempt, the profits you earn on the policy (in the case of with profit policies such as money back, whole life and endowment policies) are tax-exempt, and the sum assured paid out is also tax-exempt.
The Triple E status of life insurance policies is afforded by Section 10 (10)(D) of the Income Tax Act.
Children's Plan Tax Implications: Basics
Children's Plan Tax Implications: Opinion
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