TAX SAVING PLANS

Avail Tax Benefits by Considering the Most

Effective Tax Saving Plan

A life insurance policy is an important tax planning tool, as you are eligible to receive tax benefits when you become a policy holder.

Under the Income Tax Act 1961 you can claim deduction on premiums when you invest in a life insurance plan. To ensure that you extract the maximum tax benefits it is important that you take wise investment decisions after much deliberation.

You can diversify your investment portfolio by investing in different insurance plans. In addition to that you will benefit from the tax benefits which come with the insurance plans.

You can save a considerable amount of money by paying lower premiums.

Save on taxes

You must make note of the fact that the maturity proceeds of most of the life insurance plans are free from taxes.

It is a wise idea to look for a long term life cover if you want to save on taxes. Today, you have various tax saving plans, which are available to individuals who can gain benefits under different sections. Depending on your income level and financial status you will fall under different categories.

The tax benefits differ from one section to another. Before you invest in atax saving plan it is important that you conduct a thorough research and gain an insight into the various financial products that are available.

Enjoy tax benefit

You can save tax by claiming deductions on the premiums which you pay. You do not have to pay any tax either on maturity or on death when you opt for a life insurance plan.

When you opt for tax saving plans there are some points which you should bear in mind. You can avail tax benefit under section 80C on the premiums which you pay on life insurance.

Under section 80CCC you will get tax benefits on premiums which you pay on pension policies. Under section 80D you can enjoy tax benefits on health insurance.

Opt for life insurance

Life insurance is one of the most preferred by most investors asa tax saving plan. It is an important financial tool which can help you save on taxes.

By opting for life insurance you can secure the future of your loved ones. The amount of life insurance which you should opt for depends on various factors which are expenses, liabilities, outstanding debts, mortgages and income.

You can opt for term insurance if you want coverage at fixed premium rates for a specific period. 

Tax benefits on child plans

You should not overlook the tax benefits which are offered on child insurance plans. When you think of ways to minimize the amount of income tax which is payable you can consider investing in a child insurance policy.

Child plans enable parents to provide for their child’s future as well as save regularly. Child plans instill a sense of discipline among the parents as they have to invest a fixed amount over a period. You can save on taxes as you invest wisely and guarantee your child’s future. You will get the benefit of deduction of premium from your taxable income with such a tax saving plan.

[Source: http://onlinelifeinsurance1.weebly.com/blog/avail-tax-benefits-by-considering-the-most-effective-tax-saving-plan]

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