Life Insurance coverage Plans Primarily, time period insurance coverage and endowment insurance coverage are life insurance coverage out there. Below time period insurance coverage plan, lump sum quantity is paid in case of demise of insured. Endowment plans present twin good thing about funding and insurance coverage. Lump sum fee is acquired on demise or maturity, whichever is earlier. ULIPs are market linked merchandise. Therefore, the chance part is greater than conventional insurance coverage merchandise.
Quantity invested in life cowl coverage or ULIP might be claimed as a deduction underneath part 80C to the extents of Rs 150,000. There isn’t a restrict on the quantity of funding made. Nevertheless, no deduction might be claimed for any quantity exceeding limits specified. Additional, deduction underneath part 80C might be availed solely to the extent of 10% of sum assured or premium paid, whichever is decrease. The quantity of sum assured (together with any bonus) paid to the insured or his nominee is exempt from tax underneath part 10(10D). Pension Plans Below pension plans, periodic funds are made to the policyholder publish retirement. Insurance coverage are basically for the good thing about dependants of the policyholder. However, pension plan goals at sustaining the usual of dwelling of policyholder and his dependants. Tax advantages might be availed by investing in pension plans. Any quantity invested in a pension plan might be claimed as a deduction underneath part 80CCC, topic to a most of Rs. 150,000. Additional if such annuity is surrendered earlier than maturity then such sum shall be taxable within the 12 months of receipt. Moreover, general restrict of Rs. 150,000 has been set for part 80C and 80CCC. Thus, cumulative deduction underneath part 80C and 80CCC can’t exceed Rs. 150,000. Thus, insurance coverage and pension plans not solely show to be the most effective financial savings plan but additionally safeguard in opposition to future occasions. Medical insurance
Well being plan is popularly often known as mediclaim. The price of medical therapy is surging. Therefore, well being plan is now a necessity. Medical insurance supplies for hospitalization bills and unintended cowl. Preventive well being examine up can be lined underneath medical insurance coverage. Deduction underneath part 80D might be claimed for quantity invested underneath medical health insurance. Deduction as much as Rs. 25,000 might be claimed for medical insurance coverage of self, partner or dependent youngsters. Additional, deduction as much as Rs. 25,000 might be claimed for medical insurance coverage of oldsters. If medical insurance coverage is availed for a resident senior citizen then the restrict is elevated to Rs. 30,000. Preventive well being examine up until Rs. 5,000 can be availed topic to the above talked about limits. In conclusion, it’s important to diversify your funding portfolio with merchandise which offer aside from monetary advantages.