Life Insurance Policy as Tax Saving Instrument

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Life Insurance Policy
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Life Insurance Policy as Tax Saving Instrument
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• If you are young, single, with no dependents, you
  have all the time to think about tax planning and
  related investments that help do so. Banks and
  financial advisors might have already started
  approaching you with their tax saving ideas.
  Basically, you have ample opportunities to gear
  your investment portfolio on the right track.
• As the tax season approaches, we go haywire
  trying to figure out how to save up excess tax,
  through different investment options. Such times
  are really tricky they pose a challenge for us
  to find the right instrument for tax savings.
  Remember, tax planning is a critical financial
  consideration, but need not be the only focus of
  any investment portfolio.
• Importance of Tax Planning
• Tax planning is one of the most integral aspects
  of personal finance. It is imperative for the
  reason that it helps you cut down on the amount
  of payable taxes and increase your savings. There
  is no denying that these savings can be utilized
  further for financial security in the future. We
  are entering that time of the year when most
  individuals rush to explore different tax saving
  avenues for the year through multiple investment
  options.

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• Investing a portion of your total savings in some
  securities is an ideal method of tax planning
  that provides you with tax benefits. Out of which
  Life Insurance is the most effective and
  preferred avenues of all the investments. Let's
  have a detailed look over Life Insurance as an
  important tax saving instrument.
• Life insurance policy should always be given
  preference, especially when you have dependents.
  Although you have multiple options available for
  saving taxes, life insurance is definitely one of
  the most effective. Where Life Insurance aims to
  provide financial protection to its
  beneficiaries, in case of unforeseen events,
  tax-savings follows like an icing on the cake.
  Many a times, investors neglect the basic
  objective behind this investment and end up
  purchasing a wrong policy. Therefore, you need to
  take care while choosing the policies, as not all
  are entitled for tax exemption.
• How much life insurance you need largely depends
  on factors such as regular income, expenses,
  financial obligations, and future goals like
  education, marriage etc.

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• You can opt for a pure life insurance for high
  life insurance coverage. Here the premium is very
  minimal which serves the purpose of section 80C.
  The tax benefit is the advantage that comes along
  with this policy.
• You can also get Tax benefits on Health Insurance
  products. Both the policies in combination can
  help you save overall on the net tax liability.
  Click here to read more about the tax benefits
  from life insurance policy.

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