This is true because in the absence of protection, your assets and existing investments will be jeopardized. Therefore, getting a health insurance for self, family and a life insurance on the life of the bread earner in the family is extremely important. Having both health and life protection is extremely essential. Let us look at how these two risks covers work and how one can also benefit in terms of tax savings.
Life Insurance
The premium that you pay towards a life insurance policy is also eligible for a tax deduction up to Rs 1,50,000 under Section 80C. If the premium paid in any of the years during the term of the policy is more than 10 per cent of the sum assured, then deduction will be allowed only for premiums upto 10 per cent of the sum assured. This applies to all term, endowment or unit-linked plans policies bought from any of the private life insurance companies and LIC as well.
The money from a life insurance policy is most useful in replacing the income that will be lost on your death. This will protect the standard of living of dependents like wife and young children. One way by which this can happen is by helping your dependents pay off your financial obligations like unpaid bills like those for medical expenses, credit card debt and housing loans. Without life insurance, your other assets will have to be liquidated to honour your financial obligations.
Another use of life insurance can be to provide liquidity to heirs of your estate. Life insurance policies with correctly designated beneficiaries, backed by a will can make the distribution of your estate much smoother.
Last but not the least, many people like to earmark life insurance policies for life goals like children’s education and retirement.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
5 Steps To Achieve Your Financial Goals
From a beach house, a Jaguar, to traveling the world – there are many things in life that we want to accomplish.
Microbiome: The Invisible Ecosystem Within us that Safeguards our Health
Imagine being able to heal yourself and build immunity against major diseases without relying on heavy medication. It sounds fantastic, right? Who wouldn’t want that? The key to achieving this lies in a fascinating area of research—our microbiome.
Gold ETFs: Attractive option for retail investors to take exposure to yellow metal
With the equity market experiencing volatility in August, investors are increasingly seeking to diversify their portfolios.
The Retail Revolution: How India's Stock Market Got a Makeover by the Common Man
In the annals of India’s financial history, the stock market has long been the playground of the big boys—mutual funds, insurance behemoths, and foreign portfolio investors (FPIs).
Strategies to adopt when the markets are at a high (for new and existing MF investors)
An investor must have a plan in place and, more importantly, stick to it regardless of shifting market conditions.
A Collaboration to keep Health FirstPNUT and IDA come together as One!
You reap what you sow! And if you sow health, you will reap a healthier tomorrow. Following the same lines, Personal Nutrition (PNUT) and Indian Dental Association (IDA) have come together as partners to promote complete health and nutrition for each individual! How things unfolded? Let’s explore.
Making a choice between equity and debt mutual funds for long-term goals
Mutual funds are quickly becoming a preferred investment choice for millennials.
ASK THE EXPERT
From last Financial Year, I have shifted to the new Tax Regime.
Flexi-cap Fund Vs Hybrid Fund
Investors in mutual funds can choose from equity, debt, or hybrid funds, each offering different risk and return profiles. Flexi-cap funds provide diversification across market capitalisations, while hybrid funds balance equity and debt for stable returns.
Neuroplasticity: You Can Teach An 'Old' Brain New Skill
A few decades ago, it was believed that the brain’s structure and functions were entirely dependent on genetics, age, and early childhood experiences.