Life insurance provides two types of tax benefits:
The premiums you pay for a life insurance policy are eligible for tax deductions upto Rs1.5 lakhs under Section 80C (to the extent of 10% of sum assured or actual premiums paid whichever is less)
The death benefit (including any accumulated bonuses) received by the nominee is fully tax- free as per section 10 (10 D).
Any maturity proceeds received (other than death benefit) are tax-free provided, the premiums paid in any of the years during the term of the policy do not exceed 10% of the actual Sum Assured.