You can claim a deduction on your life insurance premiums under Section 80C ` of the Income Tax Act, 1961. Save tax: When it comes to tax planning, life insurance plays a vital part in optimizing your taxable income.A life insurance plan ensures that the constant stress of financial planning is reduced considerably thus providing one an absolute peace of mind A life insurance plan is an instrument that can provide both. Peace of Mind: In these uncertain times, all anyone wants is a safety net that not only provides financial security but also helps in building a sizable corpus over time.Also, new age insurance plans allow you to withdraw money at key milestones without any additional charges Paying a nominal amount as a premium at a frequency of your choice will help accumulate money over a period of time. Life insurance plans inculcate a habit of disciplined saving. Accomplish your financial goals: Life insurance plans help you achieve your financial goals be it securing your family from life's uncertainties, saving for your child's education or buying your dream house.There is no way to replace a loved one, but planning with life insurance does help in taking care of the financial needs of the family To provide complete financial security to your loved ones: Life insurance makes sure your loved ones won't suffer financially in your absence.The life insurance company invests your money and pays back the returns generated from it to you as payouts In simple words, you pay the life insurance company a premium in a lump sum and your money is returned to you as regular income either immediately or after a certain period of time. Annuity plan: An annuity plan is a type of retirement plan that offers you a regular payment in return for a lump sum investment.Endowment plan: An endowment plan allows you to build risk-free savings and protect the financial interests of your family in your absence. A part of your premium gets invested in equity/debt/balanced funds as per your choice and the other part is used to secure your loved ones with a sum assured Unit linked insurance plan (ULIP): A unit-linked insurance plan offers investment and insurance under the same policy.Health insurance plan: Health insurance plans reimburse insured customers for their medical expenses, including treatments, surgeries, hospitalisation and the like which arise from injuries/illnesses, or directly pay out a certain pre-determined sum to the customer.Term life insurance plan: Term insurance plans offer your nominee a fixed sum assured amount in exchange for regular premiums, in case of an unfortunate incident during the policy policy term with a Smart Exit Option ō. The maturity benefits also enjoy a tax-free` status under Section 10(10D) in most cases The premiums paid are tax ` deductible under Section 80C and 80D of the Income Tax Act, 1961.
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