Do you know that you can save tax under Section 80C of the Income Tax Act by investing in various insurance policies? While it is important to have a balanced investment portfolio, it is important to invest in various policies and it is also important to invest in such policies which give the highest returns. Explain that insurance policies help in securing one’s future as well as help in saving tax. But saving tax should not be the primary objective of having an insurance policy.
Some of the points given below may help you…
term insurance plan
Term life insurance is one particular policy that you should include in your financial planning portfolio. You are eligible for tax exemption under section 80C of the Income Tax Act 1961 for the premiums paid for a term life insurance policy to financially secure the future of your dependents. The maximum savings you can make is up to 1.5 lakhs by paying premium under this section.
Unit Linked Insurance Plan (ULIP)
You can easily save tax by investing in ULIPs (up to 2.5 lakhs) under Section 80C and 10(10D) of the Income Tax Act. This is allowed on exit from the policy, after five years or upon maturity, the value of the fund is completely tax-free.
Apart from providing family protection cover, an endowment policy is a life insurance policy that helps you to save regularly over a specific period to get a lumpsum amount on the maturity of the policy if you survive during the policy term .
first published:Jan. 17, 2022, 1:31 p.m.