INSIDE LIFE INSURANCE: How Life Insurance remains an attractive solution, despite tax changes

The recent tax changes in the Indian insurance sector in 2023 seems to many as a significant impact. However, despite these changes, life insurance remains a vital financial instrument that can help clients achieve their long-term financial goals.

- Venkatesh Naidu

Here are salient features that will continue to be keep Life Insurance attractive

1. Life Cover

Life insurance provides the invaluable benefit of financial protection to your loved ones in the event of your untimely demise. It offers a lump-sum payment, known as the death benefit, to the policyholder's beneficiaries. This amount ensures that your family can maintain their current lifestyle, pay off debts, and take care of future expenses, such as education and healthcare.

2. Long-term Savings and Wealth Creation

Life insurance policies, particularly endowment and unit-linked insurance plans (ULIPS), can be powerful long-term savings and wealth creation tools. Policyholders can grow their wealth by investing in diverse market-linked instruments, such as equities and bonds, through ULIPS. Endowment plans, on the other hand, offer a combination of insurance and investment, allowing policyholders to save systematically over time and receive a lump-sum payout upon policy maturity.