Insurance: Protecting Lives and Saving Money
The basic purpose of life insurance is to protect yourself and your family from financial risk. Aside from this, life insurance policies also have an added advantage in the form of tax savings. This is related to the premiums paid on insurance.
People who take insurance, pay regular premiums to insurance companies throughout the duration of the policy. In return they are covered for a certain amount which is payable by the respective life insurance company, in the event of death or the occurrence of any other pre-existing condition covered in the policy of the insured. The premium amount imposed on these policies, by life insurance companies in India, are usually low and affordable. This allows the common man to have insurance. The Government of India also encourages people to buy life insurance policies, as it is perceived as a form of investment rather than a form of spending. Income tax and capital gains tax are not collected on premium amounts. This means people can buy life insurance policies for any amount, without having to pay income tax on any of their premiums. In case of capital gains tax, people will have the option to sell their policies without having to worry about paying tax on the amount generated through selling the insurance.
Life insurance companies in India or life insurance India offer several different policies that cater to our needs. People have the option to choose the policies they want, and to buy these policies according to their specific needs. Polices pertaining to child plans and retirement plans are the ones that are the most popular. When it comes to retirement plans, people below the age of 50 are only required to pay low premiums. This is the case with most life insurance plans offered by insurance companies in India. The reason is that after the age of 50, it is perceived to be a risky period in the life as this is the period when people are prone to diseases, health issues and various other ailments.
Child Plans are another type of insurance that allows you to save on your tax payments, and secure the futures of your children. Child Plans can be of various types, ranging from career plans and higher education, to marriage. The premiums may differ based on the type of plans. Saving plans are also policies that allow you to save on tax payments. The advantage of these policies is that they work on the same principle as fixed deposit accounts. A saving plans policy is taken for an amount, and you have to make regular premium payments. On expiration of the policy you get the policy amount, which in most cases is higher than the total premium paid.
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When looking to buy Pension Plan cover it is ideal to do the necessary calculations prior to committing to a particular insurance provider. An child life insurance calculator will guide you in taking the right decision, for more information on this tool, visit us
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