Get the Best Life Insurance

Life insurance policy is one of the most essential things that a person should get in his or her lifetime. Earning members of your family must specially get a top life insurance plan to help their dependants handle the challenges of life in the event of their sudden death.

To get advantages of life insurance all you have to do is pay a small amount of money yearly to your insurance provider. In case of your death, your nominee would get an amount called the sum assured. These funds can be used for the education of kids, to repay loan or to fulfill the daily requirements of life. Though life insurance won't be able to fill the emotional trauma of the family of deceased, although it is extremely beneficial in making them capable of meeting the financial challenges which might take place in the wake of a death.

Other advantages of life insurance

Life insurance is looked upon a useful means of investment. Unit Linked Insurance Plans (ULIPS) are popular amongst people who can take a higher element of risk. You can take a policy that suits your requirement and risk appetite. In addition, tax saving is another reason why many people take insurance coverage. Under section 80C, money paid as premium of life insurance policies is exempted from income tax close to the limit of Rs. 1,00,000 per year. Besides, the proceeds from a life insurance policy on maturity also get tax exemption.

Forms of insurance policies

Various types of insurance policies are available these days. You can compare life insurance policies and choose a policy that best meets your financial goals. Most well known forms of insurance policies are discussed below: 

Term insurance in India

This type of insurance policy is even known as the pure protection plan. Term Life Insurance is a straightforward policy which insures only the risk of death of the policyholder for a given period. If the policyholder does not die during this stipulated period, then no payment is made. Term Insurance is the cheaper form of life insurance plus is appropriate for those seeking to insure their life at minimum cost of costs.

Experts believe term insurance should be taken at an early age, as the premiums are lower. Because it is a pure risk coverage option, the policy can be taken by any person no matter their age, occupation or sex. Apart from, Term insurance should be taken as long tenure as available from the insurance provider.

Best pension plan in India

Pension plans offer monetary stability to policyholders during their retirement days. This policy is considered crucial in today's scenario where children are increasingly heading away from the joint family structure as well as aged have to fend for themselves. One needs to do pension planning during income earning years to gain regular payments at the time of retirement days. Under this plan, a policyholder gets Pension payments or annuities as long as he/she is alive. In certain policies, the pension is paid to the spouse or nominee even after the policyholder's death.

Experts think a person must begin a person early in the career. However, prior to selecting a policy it is recommended make an evaluation of the pension amount you may need and moreover the premiums you can pay for.

Best child plan in India

Child life insurance policy is quite useful when you are securing your child's future. The insurance policy can be taken by the parent of the guardian as early as when the child is 3 months old. As the policy is started at an early age premiums are low. The policy insures the risk of the child's life and moreover the amount assured amount gets transferred in the name of the child once he/she is 18 years old. This money can be utilized for kid's higher education, business ventures, marriage or even any other investment.

Choosing the best life insurance plan: To select the right insurance policy you can take help of insurance comparison websites such as the MyInsuranceClub.com. The websites assist you to compare quotes from top insurance providers in India. You can compare lnsurance and even choose a policy that best meets your requirement. 

Tax Advantages of Life Insurance

TAX ADVANTAGES OF LIFE INSURANCE

As the foregoing example illustrates, the utility of life insurance stems both from the "double return" character of lifeinsurance itself and its relatively "tax-sheltered" position.

The return on life insurance is twofold. First, there is an investment return, represented by tax-free accumulation of interest on the going cash value. Secondly, there is a tax-free mortality return, that is, the ultimate proceeds paid out at death almost invariably represent a gain over the total premiums paid in. In addition to these income tax advantages we have seen that where the insurance policy is owned by a member of the insured's family, or by a trust or by a corporation, the proceeds which are paid at the death of the insured are not subject to the estate tax.

As will be further considered, these tax advantages of life insurance can be compounded by careful planning. Suchmeasures, similar to the following, should be considered:

1.      The use of tax-protected income dollars to carry life insurance. Trust income which is tax-protected as far as the individual is concerned, and corporate dollars which otherwise might be declarable as dividends payable from the profits of the corporation, can be utilized for the payment of premiums.

2.      Carrying life insurance by borrowing against cash value to pay premiums, and paying out only a pure insurance cost plus interest dollars that under today's law are tax deductible.

3.      Guaranteeing the replacement of capital dollars spent today by tax-free life insurance proceeds to materialize at death. The family may be protected more effectively, for example, by funding charitable gifts made during the donor's lifetime, such funding being accomplished with a life insurance policy on the donor, the ownership of which is in some one other than the insured-donor. At death, the insurance covers what was given away, but is not subject to estate tax, since the deceased was not the owner of the life insurance. In this way, annual tax deductions may be claimed for the gifts, but the entire value of the gifts will be realized and recouped by the family at the death of the insured-donor.