Life insurance is very important in everyone's financial portfolio.
The main purpose of insurance is Life risk cover i.e. financial protection to the family in case of an unforeseen event- say death, illness, disability on account of accident, etc. It also work as a ‘compulsory savings’ leading to creation of wealth which can be utilized for education/marriage of children; for old age provision; for construction of house; etc. Policies are taken to get exemption from Income Tax and to assign these to financial institutions as collateral security while availing different type of credit facilities including housing loan.
You can take Life insurance policy when you are on your visit to India or when you are in your present country of residence.
These are major categories of insurance policy:
- Endowment policies with a definite term
- Money back policies having provision for periodical lump sum payments called survival benefits
- Term insurance policies which have low premium but high risk cover
- Pension plans
- Children plans
- Joint life policies
Each life insurance policy has distinct features covering certain type of benefits. The selection depends on your needs. We can discuss about your needs and suggest best suitable policy for your financial planning.
Tax benefits on Life insurance policy
- Deduction allowable from Income for payment of Life Insurance Premium (Sec. 80C).
- Income tax exemption on Maturity/Death Claims proceeds under Section 10(10D) : Any amount* received from exempted from income- tax in India. This is very key feature of Insurance which is not available with any other financial tools (except PPF, which is highly recommended for everyone's portfolio)