A term insurance plan has a lot of benefits and that is why it is one of the most preferred forms of life insurance. Among the benefits, is the tax saving advantage that every policyholder wishes for. Paying tax is never a pleasant thing to do. So when you find a legal and valid way to save tax, you embrace it with both hands. Term plans give you this opportunity. Read on to know more.
Saving tax in term insurance plans
The premium you pay towards a term insurance plan is tax exempted. This means that the yearly amount of premium that you pay is deducted from your taxable income. A maximum amount of INR 1,50,000 is deducted. If your yearly premium is more than that, the remaining amount will not be tax exempted. After deducting the premium amount, your taxable income falls under a lower slab and this helps you to save tax. Under a lower slab, you pay less tax. Section 80C of the India Income Tax Act, 1961 makes it possible for you to do so in a completely legitimate manner.
This is one of the main benefits of buying a term plan. There are some very useful other benefits too. They are:
Common tax saving benefits of term insurance
When you buy a term insurance plan, you get to save tax and get all these other benefits too. So what are you waiting for? Get your term insurance cover today if you have not done so already. You can then proudly give more money to your family and also keep their future financial wellbeing covered. There are just too many advantages of term insurance that are waiting for you. Are you listening?
The bottom line
Gift yourself and your family members a lot of mental peace by investing in a good term life insurance policy. There are some excellent term plans available in India these days. You can go online and read all about them. Compare them and see which term insurance cover is most suitable for you. Once that is done, buy your plan and insure your life instantly. Tax saving is indeed a good a benefit of term insurance, but there are other great benefits too. Take full advantage of all these benefits and own a term cover that would fetch you the highest value. So without wasting any more time, start exploring the world of term insurance and discover your ideal cover.2018-07-06
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