Single premium life insurance (SPLI) policies are also available, and they offer the same advantages of security and cost-savings as normal premium policies. The SPLI’s term is typically ten years but one may exit after five years.
In SPLI policies, insurers define the minimum and the maximum sum assured on their policies. In most of them, the minimum sum assured is 1.25 times the single premium or even 1.10 times the single premium. The maximum sum assured is typically 10 times single premium for lower ages while for those above 35 or 45, even the maximum is 1.25 or 1.10 times single premium. So, unless one chooses to go with the maximum cover of ten times, the tax benefit is lost.
Investors typically choose a lower life cover because of the lower incidence of mortality charges, i.e. the cost of providing life insurance. The lower the deduction for mortality charges, the more funds are available for investment. Even though the mortality charges in a policy with 10 times the sum assured will be higher than in a policy with 1.25 times the sum assured, keep in mind that the tax benefits are lost in the latter.
The SPLI appears to have gained popularity in recent years. But, as a buyer of SPLI, are you taking advantage of the various tax breaks available? Will your policy’s Section 80C benefit be available, and will the maturity proceeds be tax-free? Check because not all SPLI available from life insurers are structured to help you take advantage of such tax benefits. It is better to be aware of the tax rules before you lose such benefits.
Denne historien er fra March 2023-utgaven av Investors India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra March 2023-utgaven av Investors India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
A Doctor Within You: Your Immune System
The fact that you survive is due to your immune system-a fascinating network of chemicals and cells that protect your body.
PERSON OF THE YEAR 2024
Like every year there were many contenders. Don is back dodging bullets by the ear. He can claim the year. Criminal convictions?
Indian Mutual Fund Industry in 2025 What Lies Ahead?
Q. How do you view the performance of the MF industry, in general, and your fund house, in particular, during 2024?
Add Health to Your Wealth
Life is unpredictable because it is influenced by countless unpredictable factors such as accidents, illness, economic changes, natural disasters or personal circumstances.
Market strategy for the year 2025
India’s GDP print came in lower than expectations at 5.4% substantially lower than 6.7% recorded in Q1 FY’25 and 8.1% in Q2 FY’24 seems mainly by a slowdown in government expenditure and capital formation.
Review and Rebalance Your Portfolio at the Start of 2025
At the start of 2025, investors must review their investment portfolios and bring about certain changes to prepare them for the challenges of the new year. Let us begin by reviewing the year that has gone by, and then discuss the changes you need to make to your portfolio.
An Overview on Asset Allocation
The recent sharp volatility in the stock markets has retail investors worried, especially those who put all their funds into equity and completely ignored fixed income/debt and gold.
Indians are Developing Weak Bones
In India, 1 out of 8 males and 1 out of 3 females suffer from osteoporosis, making India one of the largest affected countries in the world.
"The strategy behind the Tata India Innovation Fund centers on identifying companies that are driving transformative or incremental changes through innovation"
Yes, we certainly believe innovation is a powerful theme with immense potential for the coming years, and we are excited to bring it to our investors.
What is Hybrid Mutual Fund?
Hybrid Mutual Fund is a combination of more than one type of fund. While they invest in shares of companies listed on the exchange, like equity funds.
