Everyone should make the life insurance an integral part of an individual’s financial planning. Because it’s the biggest security anyone can provide to his family to meet their future uncertainty.

Though, it’s totally a personal choice what kind of insurance policy and the amount of the financial cover, anyone may choose.

Not only financial cover to meet future uncertainties, life insurance is also an important tax-saving instruments on account of income-tax benefits available under the Income Tax Act, 1961 (The Act).

A deduction under section 80C of the Act can be claimed in respect of the life insurance premium paid by the tax payer during a financial year (April 1 to March 31). The maximum deduction that could be claimed is restricted to the overall limit of Rs 1 lakh available under the said section.

As per the section 10(10D) of the Act, any amount received under a life insurance policy, including bonus paid on such a policy is exempt from income-tax, subject to specified conditions.

But remember, any claim proceeds received by the dependent(s)/nominee(s) of the policy holder after his death is not taxable under the Income-Tax Act.

Though in India, life insurance is till in the foundation mode, life insurance should be the first and foremost financial investment that one should consider. The best option is always go for something with reasonable premium like Term Life policies. It also provides a good avenue to financially de-risk the family in the hour of need.

Most important, you should too encourage people to go for life insurance, as the biggest security anyone can provide to his family to meet future uncertainty as well as for saving tax.

Now, if you want to understand the nuances of different types of policies and its price, feel free to seek the help of InsuranceMall to select the right products based on your need.

InsuranceMall is the leading and first online insurance broker in India. With the motto to make our customer delighted and proud about their decisions, we’re always there to help them with best possible policy.

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This entry was posted on Thursday, February 4th, 2010 at 5:21 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.