A person, aged 25 years, wants to take insurance cover of Rs.5 lakh, what will be his tax benefit?

Question

Suppose a person of Age 25 years, not previously insured wants to take an insurance policy of the tune of Rs.5 lakh, will this help in his tax saving?

Answer 1

hi

i am ibrar from chennai. i am a investment advisor.

yes ofcourse it will help in his tax savings.



but it depends on many things like

the main purpose of taking insurance?

what kind of benifits you would like to get?

what type of insurance you want to have(life or healthor ULIP)?

tax savings is a extra benifit with an insurance policy.

normally tax benifit in insurance will be equal to ur premium.

premium will differ as per ur policy... nd i t depends or ur term also...

you can pay annual premium of 6000-7000rs / lack for money back policy

2000-3000rs/ lakh for term insurance...

like that it will differ. if you wish to have a policy and want more details you can contact me with details.

my id is [e-mail]

thanks

bye

Answer 2

Your tax saving depends along many things. Why you should take Rs.5 lakh insurance? Is it all the money that you need to protect your family is something happens to you? or an accident or a critical illness occured to you?  So insurance is entirely different with tax savings. tax savings is a bonus offer with an insurance policy. you will get the annual insurance premium that you pay for the policy of your choice is counted to arrive the maximum deduct able amount along with your PF, Bank  investment, Housing loan principal amount, contribution to pension fund, investment in certain mutual fund, tuition fee paid for your children if you have. So you can invest Rs. 100000 for a ulip policy with a life cover of Rs.5 lakh and a term of five year or you can choose a pure term policy for 35 years paying around Rs. 2000 a year for the same five lakh insurance cover.  in both cases the risk cover is five lakh but the premium amount is different as well as the term too. The tax benefit will be equel to the premium amount if you have no other eligible investment as mentioned above.

Answer 3

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