Example: Imagine you have a $500,000 permanent life insurance policy, and you borrow $10,000 to cover a medical expense. If you repay this $10,000 loan, along with any interest, your policy’s ...

Since coverage amounts can be very high—into lakhs—it’s a significant advantage that the life insurance payout is tax-free. But some aspects of life insurance won’t get past the taxman.

Life insurance helps support your loved ones financially if you die, but some causes of death, including suicide, committing a crime, or engaging in dangerous sports, might not be covered.