To save tax, Life Insurance products play an important role. Under the Income Tax Act 1961, by investing in a life insurance plan, you are allowed to claim deduction on the premiums that you pay when calculating taxable income (subject to conditions of Income Tax Act, 1961). This means, the insurance premiums which you pay helps in reducing your tax outflow. Further subject to conditions, maturity proceed from Life Insurance comes under exempted incomes. This means, no tax to be payable on any benefits received on maturity or on death. Hence Life Insurance Scheme can help you avail dual tax benefits. Also, you are investing in a Life.