Page 44 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE
P. 44
Who gets the Tax benefit after assignment?
Even after the assignment of the policy, the tax benefit stays
with the assignor(if he is paying the premium) because his life is
insured under the policy. Even if the assignee is paying the
premium, he will not be entitled to any tax benefit. In the case
of assignment of policy to bank for loan, the premiums paid by
the assignor are tax deductible.
Lastly, assignment of the policy can be used to gift your
insurance policy to someone or to take a loan against your
policy. But the final decision of assignment of your policy is in
the hands of the insurer, which puts restriction on any misuse
of the assignment clause under your life insurance policy.
(Indiainfoline)
