Find out how you can save your taxes by investing in insurance policies.

1. THINGS YOU NEED TO KNOW
ABOUT TAX BENEFITS

2. 1. Have you recently started on your career path?
2. What are your savings plan?
3. How much do you know about investment and insurances?
4. How will your finances shape up, considering your lifestyle, after you
retire?

3. Whether you have just started earning for yourself or reached your middle
ages where you have your family that is financially dependent on you, you
need to plan your future while taking into account factors like how much
you earn, the family that needs you, your lifestyle, your expenditure, the
medical needs, and more. There are several investment options where you
can grow your wealth and insurances that will help secure your interests and
those of your family’s.

4. Investing in properties, buying gold and other precious metals, investing in
insurances are some of the ways you can go about helping build a financially
secure future for yourself. Making savings and depending on that for your
needs and emergencies while you are still working and for after retirement
would be a folly.

5. When it comes to insurances, traditional forms like life insurance and term
plans are purely meant for securing your life from challenges that may
otherwise fracture your savings. Then other insurances like endowment
plans and ULIPs allow you dual benefits of being insured and make
investments in the same package. You get several other advantages like
insurance tax benefits, additional riders, special discounts, and more.

6. Most of the insurance packages available
today are perfect for your tax saving plans.
Whole life insurance, term plans, endowment
policies, ULIPs all get you insurance tax
benefits. Even health insurance plans, whether
for your individual needs or floater policies to
secure the medical requirements of your
family, get you tax benefits.

7. When you pay your premiums, your taxable income gets reduced thereby
decreasing the amount you would otherwise have paid in the form of taxes.
The tax benefits have been guaranteed by Section 80C, 80D and other of its
subsections under Income Tax Act. Find out more about your rights when you
buy your insurance. The policies of different companies may be different.
Make all clarifications before you sign the final papers. There are tax benefit
calculators available online that will help you get an approximate idea of how
much you will save. These tax benefit calculators are easy to use.

8. But an important thing to know is that tax benefits are only just one of the
advantages. The priority should be first on securing yourself and your
family. An insurance product must not be bought simply to avail tax
benefits. An insurance is meant to provide financial stability and care for the
immediate needs that may arise. Only saving taxes must not be why
insurance policies should attract you.