Savings Quickly Add Up: What Are the Tax Benefits on Term Insurance?

There are tax benefits in places you wouldn’t think like the opportunity in an online term plan. A term plan is what they call “pure insurance” because it covers you without frills. It protects all your needs at an affordable cost with an inventory of options to expand the insurance.

Or, you might prefer a tax savings investment to achieve your financial goals actively while protecting your family, retirement, or business plans. There is a plethora of plans available to help your savings quickly add up.

Term life Insurance

The Economic Times notes that, with term life insurance, “financial security for nominees in case of death of the policyholder.” At the same time, it promises a set amount in the case of your premature death to fulfill your family or business financial needs.

Term life differs from other investment vehicles like fixed deposits or mutual funds. You might only enough insurance to pay your funeral expenses, to cover your mortgage, to provide for your family’s future, or to resolve outstanding business debts.

Term life contracts does not have maturity benefit. So, the cost is affordable, encouraging you to apply for adequate protection. Term insurance plans provide tax breaks under Section 80C of the Income Tax Act. In addition, any death benefit realized on your passing is tax-free under Section 10(10D).

Other life insurance opportunities

Savings add up quickly and safely in several other life insurance opportunities. Those listed here may not be available from all insurance sources and may vary by name:

  • Guaranteed Savings Plans, for example, will help you fulfill dreams as well as your family’s. The plans pay a lump sum benefit on maturity along with guaranteed accumulations on premiums paid.
  • A Super Saver Plan is a participating life insurance policy helping you save while providing a long-term financial safety net for you and your family. And, it comes with a premium waiver that continues to pay the premium should you die or become disabled.
  • Smart Platinum plans link the insurance with an investment portfolio. The investment risk is yours, but the plan helps your savings perform better while insuring your life.
  • And, an Endowment Savings Plan Plus invests your monthly savings deposit. The accumulations let you build a corpus to fulfill your promises, pay off or reduce your mortgage early, prepay a child’s university education, or support your retirement dreams.

The Options are all Yours!

Nupur Anand, writing for Quartz India, warns, “up to 988 million Indians—or 75% of the country’s population, which is more than the population of Europe—do not have any form of life insurance.” The average Indian citizen “has only around 8% of what may be required to protect his or her family from the financial shock.”

Helping solve the problem, online life insurance presents opportunities and options you can afford or customize for your specific needs. The low-cost term life or premium savings plans can solve your security issues with the promise of payment and long-term peace of mind. So, this may be your call to action!

Wealth Creation and Saving Strategies | OnMoneyMaking