Prior to 1-4-2014, out of the total proceeds received on maturity, the surrender value on the assignment of the policy was only taxable

Post 1-4-2014, Keyman policy proceeds are fully taxable

The explanation starts defining ‘Keyman Insurance policy’, meaning a life insurance policy taken by a person in the life of another person

ULIP policies are put into a growth fund and it is not a pure life insurance policy that does not fall under the definition of Keyman Insurance

As long as the policy is a life insurance policy, whether it involves capital appreciation or is under any other investment scheme, it meets tests laid down under section 10(10D)