The Economic Times

'Never trust banks': Young entrepreneur tricked by a banker into buying '100% tax-free' insurance policies, loses Rs 15 lakh

A young businessman running a company with 1 crore annual revenue was convinced by bank officials to buy three non-market linked insurance policies with a combined yearly premium of 11 lakh, promised as 100% tax-free. After paying 22 lakh, he discovered that exceeding the 5 lakh aggregate premium limit under new tax rules makes the maturity proceeds taxable, resulting in a potential 15 lakh loss on surrender.