What Are the Benefits of Investing in a life Insurance Plan?by Travel Insurance Save money in insurance buying
Over and above providing you, and your family with financial protection, investing in life insurance policy also comes with numerous other benefits.
· Investment in a life insurance policy promotes the habit of saving. In this way you are provided with financial security at the time of retirement or your family is offered financial backing at the time of your demise.
· By purchasing a Life Insurance plan you can claim a tax benefit under section 80C of the Indian Income Tax Act, up to Rs. 1, 00,000/-.
· Under section 10(10D) of the India Income Tax Act, the maturity amount that you will receive from a life insurance policy are tax free.
· You can invest in a life insurance plan that provides you with a loan facility against your invested amount. If you require any financial assistance in the event of an emergency, you can always use the loan benefit. You can also get a loan from a bank or financial institution and put your policy up as security for the loan.
· You can invest in a life insurance plan that lets you to withdraw a part of your investment at the time of a financial crisis.
· With the life insurance policy, you can choose to add a critical illness rider to the plan, which provides you with medical support lest you are inflicted by a serious injury or illness. You may also claim an income tax benefit up to Rs. 15, 000/- under this rider as specified in section 80D of the Indian Income Tax Act.
· You can also invest in life insurance policies in the name of your children or spouse and claim tax benefit, under section 80C, on those policies too.
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Created on Nov 5th 2019 01:07. Viewed 227 times.