Invest 4G (An Individual Linked Life Insurance cum Savings Plan, UIN – 136L064V03) is a dual benefit unit linked insurance plan (or ULIP) that provides both life insurance protection and savings benefits under the same policy. Invest 4G provides you investment opportunities to maximize your savings through regular investments into market-linked fund options for your dreams and life goals. Simultaneously, the plan adds to your accumulated wealth through Loyalty Additions & Wealth Boosters, while promising to return the Mortality Charges to you upon completion of the policy tenure.
One of the most prominent benefits of Invest 4G, however, is its ability to help you save taxes under different Sections of the Income Tax Act 1961. Under the Invest 4G Unit Linked Insurance Plan, you are eligible to avail of tax benefits under Section 80C and Section 10(10D), on both premium invested and insurance benefit received upon maturity/untimely demise of the policyholder within the policy tenure.
First of all, the premium paid towards the plan is eligible for deduction under Section 80C of the Act, up to a maximum of Rs 1.5 lakhs. Furthermore, any withdrawals made or the amount you receive upon completion of the policy tenure also qualify for tax saving. In other words, whether it is the maturity benefit that your receive at the culmination of the plan or the amount your family receives upon your unfortunate demise within the policy period, all such receipts are tax-exempt in the hands of the receiver under section 10(10D) of the Income Tax Act.
Invest 4G also allows for partial withdrawals, so that you may take care of any liquidity requirements or financial emergencies that strike. These partial withdrawals can be made in the multiples of 1000s, from the 6th policy year onwards. However, it is important that you have paid all due premiums for the first five policy years ( lock-in period.) These partial withdrawals, if made without surrendering the plan altogether, are also tax-free.
Apart from these, Invest 4G is a ULIP plan, which implies that the tax-saving benefits under this plan also extend to exemptions from the Long Term Capital Gains (LTCG) tax. LTCG tax provides for the taxation of the profits accrued through long-term investments. Being a ULIP plan, the Invest 4G plan is also exempt from this tax.