Life insurance and Tax benefits only if the premium is paid by immediate family member : Your family can avail the Tax Benefit if the premium is paid by immediate family members. Confused? Keep reading to know more. Here are a few questions answered by the insurance experts about different types of insurance. Here are the top five listed question that can make your life easier. You can always go through these questions and know how to solve those insurance issues. We have answered almost all the insurance questions related to the tax benefits if the premium is paid by immediate family members.
- Can I buy personal accident cover for my driver? If I pay the premium can I claim tax deduction on it?
No, you can’t claim tax reasoning on premiums paid for your driver’s policy. Tax reasoning is just relevant on the off chance that you pay premiums for your close relatives like your companion, youngsters and guardians.
- My husband has an endowment policy with a yearly premium of Rs.24,500 and sum assured of Rs.6,10,000. He is paying premium since April 2004. Should we continue with the policy?
You have not imparted the full policy term. My view is that as you have effectively paid for a long time and if the policy term is 20-25 years you have officially finished impressive segment of the policy term consequently it’s prudent to proceed with the policy till development. Blessing strategies offer terminal reward at development which is normally a sizable sum. You will likewise be qualified for this. In this way, my recommendation would be for you to proceed with the policy till development.
You have just given points of interest of the premium and aggregate guaranteed. Different points of interest like policy term, policy highlights, reward collected into the policy over the lapsed term and so forth are not accessible and consequently, it is trying for me to direct you precisely. However, you would have purchased this policy to satisfy some financial objective. In the event that the said policy can satisfy that objective, you should proceed with it.
- The bank from where I am planning to take a home loan asked me to take a life insurance policy? Is it mandatory to take life insurance while taking a home loan? Since I already have insurance won’t that be enough?
While it isn’t compulsory for you to take disaster protection policy alongside a home advance, it is fitting to do as such. The current life coverage strategies that you have are intended to be the wellspring of financial wage for your family in the event that something untowardly was to transpire. The policy that is installed with your lodging advance will cover the extraordinary bit of your advance. The basic inquiry to be addressed is – would you need your family to acquire a home or a credit?
- I am paying premium for my life insurance policy every month. Can I change it to annual payment?
Indeed, in most extra security arrangements, changing the premium recurrence from month to month to yearly and/or the other way around is permitted.
- I usually buy single premium policies every year to meet my tax exemptions. But a financial advisor told me single premium policies are more expensive than regular premium. I want to understand if it is true.
A solitary premium policy more often than not has a moderately bring down cost structure than a customary premium policy. On the off chance that the expectation of purchasing a policy is to spare tax, you can proceed with the single premium choice. Simply guarantee that the Life Insurance cover is at least 10 times the premium paid for all the tax advantages to gather. On the off chance that the purpose of purchasing a policy is to cultivate precise, long haul investment funds (notwithstanding tax exclusions), at that point I would suggest that you settle on a consistent premium policy.
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