ULIPs with over Rs 2.5 lakh annual premium to lose their tax-edge over equity MFs

“Instances have come to the notice where high net worth individuals are claiming exemption under this clause by investing in ULIP with a huge premium. Allowing such exemption in policy/policies with huge premium defeats the legislative intent of this clause. The intention was to provide benefit to small and genuine cases of life insurance” says the budget memorandum.