2015 is the year when our new government has just announced its new budget. This is the best time for most insurance investors due to many things. First, the budget has allocated many premium benefits to people looking forward to invest in the insurance sector.
Some of these are:
- Increase in the health insurance premium tax benefit from INR 15,000 to INR 25,000. For Senior citizens this limit has been increased to INR 30,000.
- People aged above 80 who are not covered by any health insurance slab will be allowed a deduction of INR 30,000 rupees for various medical expenses.
- Additional deduction of INR 25,000 in medical expenses for disabled people.
These are some good initiatives taken by the government to boost investment in the insurance sector, especially from the middle class people. It will be really good for you to start investing in an insurance policy at the beginning of any financial year by which you get time to plan all your tax-saving allocations from your income.
Saving tax has a multitude of benefits. Not only does it save you from incurring tax, it helps you to properly allocate funds which earn you more money than a normal bank account of a fixed deposit scheme. These are some benefits of the insurance policy you should look forward to investing in:
- Maximized tax savings
- Lower cost of investment
- Minimizes risk of investment with a reputed insurer
- Substantial returns on investment
Insurance in the current market has been termed as the best investment for 2015 since:
1. Tax-deferred Growth
The biggest cash saving benefit of any insurance is that you don’t have to pay taxes on any kind of interest or capital dividend gains from your insurance policy until you withdraw its proceeds after maturity.
2. You Don’t Lose Coverage After You Reach The Upper Age Limit
Normally, a term policy ends right after when you reach the end of your age term, which is normally age 65 or 70 for Indian citizens. But you can still retain it till age 100 since Indian insurance laws cover a person till 100 years of age or death, whichever comes first. Your benefactors will get all benefits from the cover assured since you had paid all insurance premiums.
3. Retirement Plans
The retirement plans that are offered by most insurance companies offer a kind of pension plan similar to what the government offers to its retired employees. This is a good plan for people who are self-employed or are looking forward to secure their retirement years with a sum assured for every month to meet expenses.
4. Hedge Savings
The beauty of such investment plans or insurance policies is that they force you to set up a certain sum of money in order to pay your premiums. This enables you to allocate more funds into a dedicated savings allocation. These savings can easily be used in terms of emergencies. Remember, any kind of savings are good. ULIPs are best for this since they assure the security and safety of your investments.
5. Additional Deductions Announced By Government
Since the new government has announced many reductions in medical expenses for aged and disabled people holding health insurances, this is the best time to invest in one. This guarantees you savings on health bills that can be utilized on medicines and other expenses.
Remember, an insurance policy is not always about saving tax, it also insures a certain part of your life, you’re your health, belongings, assets, etc. Tax-savings are just an incentive given along with it to help you understand the benefits of such a policy.
Investment plans are excellent savings opportunities for fulfilling your long term and short term financial needs plus they assure you a specific amount of money for you and your family with a suitable insurance cover. Buying an insurance keeps you and your family economically safe from various perils of society. Investment plans are beautifully designed to offer you with a systematic accumulation of funds with regular long-term savings and security from untoward events.
Plan your savings investment in an insurance this year not just for the purpose of escaping tax deductions, but for providing you and your loved ones with a better and financially stable future.