Finance

Life Insurance Plans for Savings and Investment Needs

All You Need To Know About Life Insurance as a Simple Source of Investment

As the future is uncertain, it becomes integral for us to financially plan and back up our family. In this case, life insurance plans emerge to be the best tool to meet future and unforeseen circumstances. In addition to this, one can also be able to plan long term expenditures such as children’s education, marriage, retirement, etc. 

Apart from this, life insurance plans also come with investment opportunities in the form of ULIP or Unit Linked Insurance Plans. Financial planning should include investment planning, which involves using savings and making smart investments to increase returns. Having a plan for your investments provides you with a feeling of direction and aids in choosing the best investment strategy you should use to reach your financial objectives on schedule. Thus, by opting for a life insurance investment, you would not only be securing your future but also the future of your loved ones.

If you still have reservations as to why one should opt for a life insurance plan, then do check out the listed reasons.

Benefits of Life Insurance Plans from Investment and Savings perspective 

Financial planning and wealth creation should be strategised well before investing one’s money. Apart from safeguarding the future of one’s family and loved ones, it is equally important to understand that life insurance plans are beneficial from both savings and investment purview. To help you further, we have listed the key benefits of buying life insurance plans: 

  • Avail Income Tax benefit

The premium paid for a life insurance policy is exempted from tax. The policyholder is eligible for deductions on his/her taxable income. One can earn an amount of ₹1.5 Lakhs as deductions for the premium paid as per Section 80C of the Income Tax Act, 1961. 

Also, if the policyholder gets a health-based rider added to their plan, then under Section 80D of the Income Tax Act, 1961, he/she can get an additional deduction of ₹25000. As per Section 10(10D), the proceeds are also exempted from taxes. Thus, life insurance plans will help in reducing tax liabilities and eventually increase savings. One can check the plans of different insurance service providers and buy life insurance for tax-saving benefits. 

  • It guarantees an assured return

The key intent of buying a life insurance policy is to have financial security during retirement as well as the capability to deal with long term expenses such as children’s education, marriage, etc. Investing in life insurance policies from Tata AIA life insurance promise to offer an assured sum to the policyholder. 

  • The risk is covered

It is essential to accept the fact that life is uncertain. There are certain events in life which cannot be controlled by humans. But, one thing which we can do is buy a life insurance policy. By doing so, one can be secure in facing life uncertainties and requirements without depending upon anyone. In case the policyholder passes away, then the amount will be given to the nominee. This will help them in dealing with life challenges. Also, life insurance for retirement savings will help the spouse of the deceased person (i.e. policyholder) in facing the challenges of the retirement phase with ease. 

  • Combination of investing and life insurance

You can opt for ULIPs if you are looking for a life insurance plan that combines investment and life coverage. You can choose the funds as per your risk tolerance and get market-linked returns on investment. There are several companies that provide the best life insurance for investment. These plans should be well researched and then considered for investment. 

Conclusion 

Now that you are well aware of the benefits of buying a life insurance plan, you should not refrain from buying one. It is power packed with several benefits which will eventually help you and your family to meet and beat the financial hardships and challenges.

Leave a Reply

Your email address will not be published. Required fields are marked *