Investments in life insurance plans is worth in 2021
The second catastrophic wave of the pandemic COVID19 has unfolded various new lessons for human beings to live a healthy life and most importantly to be always prepared with your investments for the future. The pandemic has demonstrated that a good life term insurance plan and other investment schemes can help people in times of crisis. Moreover, while the condition continues to be grim but with a better understanding of the situation and tackle mechanism, it has become highly imperative to start saving and investing in long-term plans for the sake of families and dependents and 2021 is the good year to do so.
While the first-ever unique lockdown announced in 2020 to prepare for the COVID19 battle left the nation flabbergasted with a great financial crunch due to pay cuts and job losses. However, the current restrictions don't seem to have the same impact as last year, thankfully, employees aren’t being pushed to suffer another set of financial losses as corporates are being empathetic towards their employees and lending very many other natures help to their employees to deal with the current situation. Therefore, investing in a life insurance plan and other investment plans such as ULIP, Children Insurance Plan, Pension Plan, etc to make the best utilization of their monies.
The pandemic has reduced our expenditure on leisure spending habits due to no shopping, no vacation, or eating outs. Families and even youngsters are now trying to be healthy with home-cooked food which is saving their extra money. however, they can replace their shopping cart with investment plans which returns them long term benefits in the form of pension and retirement money by investing into plans like Life Annuity, Guaranteed Annuity, National Pension Scheme and many more.
The COVID19 led deaths have shocked India's mortality rate taking the negative rate to a drastic high in the last 3 years. This change has made a daunting effect on the premium prices of term insurance plans as the death claims have increased pressure on these companies. Therefore, it is a wise decision to invest in a term insurance plan at the earliest possible to enjoy the lower premium. It is always suggested to invest in a term insurance plan by the age of 30 years as a person is considered healthy, without debt, and fewer dependents.
Last not but not least, life insurance plans are a legitimate means to save taxes under Section 80C of the Income Tax Act 1961. The premium paid for the life insurance for self, spouse, or children is eligible for a tax rebate. In Section 80C, the highest deduction permitted in a year is INR 1,50,000, but as per the change made in the year 2012, the term insurance premium up to 10 percent of the sum assured are tax-deductible. People who prefer signing up for monthly payment mode must enrol for the insurance at the beginning of the financial year to leverage the best tax benefit.
Disclaimer: This is a company press release. No HT journalist is involved in creation of this content.