These days topics like personal finance management and investments are all the rage. And, why wouldn’t they be? In most cases, you get to enjoy the benefits of tax exemptions and have your life insured, or money multiplied.
After the recent global outbreak of COVID-19, the significance of having a Term Plan came to light. It emphasised the distress the loss of an earning member can cause to the deceased’s family. By choosing to insure your life, you can financially secure the lives of your dependents.
Here are a few general eligibility checkboxes for a Term Plan.
You can also apply for a Term Plan if you’re a young professional, a newly married or married couple with children or a senior citizen.
So, why not explore the option of an insurance plan? Pick from the different types of Term Plans available.
With so many diverse Term Plans available, you can conquer any fears about surviving past your policy. Choose a plan that provides you with the assurance of insurance with a guaranteed sum assured.
Still not sure about choosing a Term Plan? Maybe these incredible tax-saving benefits will help make up your mind.
You can avail of the tax benefits favoured by lakhs of taxpayers under Section 80C. This provision reduces taxable income by making tax-saving investments or other eligible expenses. It allows you to claim tax deductions up to Rs. 1,50,000 lakhs p.a. on the premium paid.
This provides income tax deductions for medical insurance premiums paid for yourself or your family, like spouse, children or parents. If you choose critical illness cover, Section 80D allows claim deductions up to Rs. 25,000.
Additionally, Section 80D provides senior citizens with the benefit of claim deductions up to Rs. 50,000.
Under this provision, the maturity benefits or sum assured, after death, will be exempt from any tax-based deductions. This means that you and your family will receive the entire matured or sum assured amount without any deductions.
You can choose extra coverage by adding term insurance riders, which can provide you with additional tax-saving benefits. Pick riders like Return of Premium (ROP) that will increase the premium amount to be paid, thus exempting you from taxes under Section 80C.
Club the benefits of tax exemption and savings by going for an endowment plan or ULIP. Either way, by wisely picking the best insurance plan for yourself, you can ensure your family’s financial security.