Can Insurances save your taxes

Can Insurances save your taxes

Income tax benefits are tax rebates given by the government of India to its citizens. The primary objective is to encourage long term savings, life & health insurance promotions and promoting housing through home loans. While doing so, the government too is benefited with cash reserves which are helpful in formulating development policies.

Insurance:

Insurance planning is important because it can help you to cut down the tax for many years in future. 
Its helps as a financial security. 
If you have enough savings,you can invest on insurances which provides lot of benefits in long term.

Types of insurance:


  • Life insurance 
  • Property insurance 
  • Travel insurance 
  • Health insurance

Life insurance:

Life insurance is designed to protect life and to product family against financial uncertainties that may result due to unfortunate demise or illness. It can also view as a comprehensive financial instrument, as a part of the financial planning offering savings & investment facilities along with cover against financial loss.By choosing the right policy as per the needs, you will be able to future plan for yourself and your loved ones securely. 
We all have different financial needs and objectives.Life insurance plays a fundamental role in most of our plans for financial security. That's because of the variety of life insurance plans available and the many ways they can be customized to meet unique needs at different periods of your life. 

Benefits: 
  • Life cover. 
  • Tax saving under section 80C. 
  • Risk cover. 
  • Retirement planning. 

Health insurance:

Tax Exemption on Health Insurance under Section 80D,section 80C and section 10. 
Health insurance, commonly known as Medical claim in India, provides a cover for hospitalization expenses related to accident and sickness. It also has a cashless network of hospitals, where Insurance Companies directly settle bills to Hospital,hence ensuring lowest out of pocket expenses for you. 

Benefits: 
  • Save Tax on Health Insurance Premium Payment:
  • Save tax in health checkups
  • No tax on cash payment
  • Save tax through section 80

House insurance:

By investing in a good home insurance policy, also referred as house owners insurance, you can protect your home from threats. Situations like natural disasters or destruction of house due to riots are quite common in India. 

Benefits: 
  • Complete coverage 
  • Additional covers for protection 
  • Mental peace

Travel Insurance:

Travelling can be a beautiful experience and also brings with it the risk of things going wrong despite careful planning. 

Benefits: 
  • Compensations in flight delays,trip delay. 
  • Get cover for accidental death,emergency,personnel liabilities. 
  • Plans based on destination. 

Conclusion:
In addition to this, there are certain factors that they need to consider when it comes to how much insurance you would need. Some of these factors are as follows: 
  • Regular income 
  • Expenses 
  • Financial needs 
  • Education 
  • Marriage