Tax benefits on life insurance after assignment


#1

If i assign my life insurance to someone can i continue availing tax benefits?


#2

Yes tax benefit under section 80C of the IT Act on premiums paid cannot be claimed by the assignee. Since the policy would be in your name and the assignee is only a beneficiary you can avail all tax benefits.


#3

Hi Nisa,

Assigning your Life Insurance to someone else means the transfer of all rights and benefits under that insurance policy to another person. However, the life insured remains the same. Therefore, deductions can be claimed for the premiums paid towards the policy that you have assigned to another person.

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Cheers,
Team BB