30/11/2020
When you start earning, you may want to fulfill your long-awaited dreams, many times making you go beyond your budget.
For example, 25-year-old Rahul has recently started earning and began paying off his education loan.
Alongside, he saves some money for the down payment of a car.
He buys a car using the saved money as a down payment and the rest 85% with the help of a car loan. Now, in addition to the EMIs for the education loan, he will have to pay the car loan EMIs for the next five years.
This is great. However, in case, any misfortune befalls and he is no longer there, his family will have to deal with the extra financial burden of the loans.
However, this wouldn’t have been the case if Rahul had taken a term insurance along with the loan. Had he taken a term plan, the sum assured would have covered the loans and any other financial liabilities like credit card debt, and other borrowings.
As a person starts earning, tax-saving becomes important.
In addition, as his/her income increase during his career, his tax liability will increase too. Here too, term insurance is beneficial.
The premiums (up to ₹ 150,000 p.a.) paid towards a term insurance policy are eligible for tax benefits under Section 80C.
In addition, even the payout that the insured’s family receives is tax-free under Section 10 (10D) of the Income Tax Act.
Thus, a term policy can serve the dual purpose of a pure protection tool as well as a tax-saving instrument.
Exide Life Insurance offers affordable term plans that help you get started on the route to securing your family's future.
DM me now to get your insurance.
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