INVP_016 - Taxpublishers.in

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The Tax Publishers Investment in Insurance Policies 1. Importance of Life Insurance Policy One of the available modes of investments for tax planning is Life Insurance Policy. Life insurance policies provide not only a form of investment opportunities or tax planning devices but also take care of one of the most vital factors of life, i.e., Risk to ones life. Some people compare life insurance policy with other investment opportunities which are not comparable, because the other investments do not carry the feature of covering risk to life. Selection of the appropriate policy, however, has its own importance in order to maximise the returns. But the choice of a policy should not be solely dependent on the Return factor. Persons having greater risk to life such as persons working in heavy industries, mines, or persons who have to travel extensively, should go for the Jeevan Mitra Policy. This policy covers triple risk, mainly in the event of death by accident, the amount payable is triple the sum assured, and in the event of natural death, the amount payable is double the sum assured. Money Back Policy of the Life Insurance is one of the best policies which offers refunds of certain sums after fixed intervals. Now a days unit linked insurance plans like market plus, moneys plus, etc. have become more popular because of attractive return derived thereon by investment in equity capital of companies. One may however, choose debt plan under ULIP in which case the return would be modest but so do the risk. It is, however, necessary to consider various LIC policies before taking a decision in favour of adopting any particular life insurance policy. It is also to be noted that now not only LIC of India provides life insurance plans but also many other insurers like ICICI prudential, Bajaj Allianz, etc., are providing various types of insurance plans. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Investment in Insurance Policies

One of the available modes of investments for tax planning is Life Insurance Policy. Life insurance policies provide not only a form of investment opportunities or tax planning devices but also take care of one of the most vital factors of life, i.e., Risk to ones life. Some people compare life insurance policy with other investment opportunities which are not comparable, because the other investments do not carry the feature of covering risk to life. Selection of the appropriate policy, however, has its own importance in order to maximise the returns. But the choice of a policy should not be solely dependent on the Return factor. Persons having greater risk to life such as persons working in heavy industries, mines, or persons who have to travel extensively, should go for the Jeevan Mitra Policy. This policy covers triple risk, mainly in the event of death by accident, the amount payable is triple the sum assured, and in the event of natural death, the amount payable is double the sum assured. Money Back Policy of the Life Insurance is one of the best policies which offers refunds of certain sums after fixed intervals. Now a days unit linked insurance plans like market plus, moneys plus, etc. have become more popular because of attractive return derived thereon by investment in equity capital of companies. One may however, choose debt plan under ULIP in which case the return would be modest but so do the risk.

It is, however, necessary to consider various LIC policies before taking a decision in favour of adopting any particular life insurance policy. It is also to be noted that now not only LIC of India provides life insurance plans but also many other insurers like ICICI prudential, Bajaj Allianz, etc., are providing various types of insurance plans.