Best Short Term policies for Tax savings

Best Short Term policies for Tax savings

August 26, 2019 8:03 am,

Are you planning to invest your money for the short term? Are you looking out for best Short Term Policies for Tax Savings? Then, you are on the right page. This article will get you the complete details on short term policies, their benefits and the need for the short term policies. All most all insurance companies provide good short term policies for the needy.

Need for short term policies:

  • You can avoid the uncertainty of long term policies.
  • Provides quick tax benefits
  • Provides life coverage during the policy term
  • Short term pension plans as short as 5 years can be taken and secure the future
  • Minimal premium charges
  • Complete death benefit like regular policies.

Advantages of short term policies:

There are many advantages of short term policies:

  • Premium payment term is short
  • Immediate tax benefits
  • 100% Death benefits
  • Risk coverage like regular policies
  • Flexible terms.
  • Easy terms and conditions.
  • Safety of capital
  • Return on Capital

So, having understood the need and advantages. let us consider some of the best Insurers and policies they offer for short term buyer.

HDFC SL crest:

It is a ULIP Plan which helps you achieve your goals in a period of 10 years along with financial protection for your family. You need to pay premiums for only 5 years and get returns after that. Best limited premium payment short term policy.

Minimum Premium Rs. 50,000
Maximum Premium No limit
Premium payment frequency Annually
Premium payment term 5 years
Minimum sum assured Age at entry below 45 years
10 * Annual premium
Age at entry 45 years and above
7 * Annual Premium  
Maximum sum assured 20 * Annual premium

LIC’s Bhagya Lakshmi Plan:

This plan is one of the best short term policies available with maximum benefits. Below are the details of LIC Bhagya Laksmi Plan

Minimum Entry Age 18 Years
Maximum Entry Age 55 years
Death Benefits Available yes  
Premium paying term 5 years

LIC’s Jeevan Mangal Plan:

Jeevan Mangal Plan is a life insurance plan that returns the premium amount on maturity in addition to the life cover offered. In other words, the premium amounts are returned to the insured if he or she survives the policy term. 

Minimum Entry Age 18 Years
Maximum Entry Age 55 years
Premium paying term 5 years
Minimum Sum Assured 10,000
Maximum Sum assured 50,000

SBILife-  eShield:

This is one of the Best short term plan available for those who are looking for short term policies. It is available at an affordable cost and provides you with tailor-made benefits.

Minimum Entry Age 18 Years
Maximum Entry Age  65 years
Premium paying term Minimum: 5 years
Minimum premium amount 3,500
Maximum Premium amount No limit
Mode of payment Yearly
Death benefit available Yes

Let us take a simple example for this policy

Roopesh aged 38 years, a healthy person with no medical ailments and a non-smoker. Decided to take up the SBI Life eShield policy for a sum assured of Rs. 50,00,000 for a period of 20 years. Mr Shenoy decides to pay the premium annually, unfortunately, Mr Shenoy dies due to a heart attack during the policy term in the 14th year. Mr Shenoy has named his wife as the nominee and that’s why she will receive the sum assured of Rs. 50,00, 000.

So, this article helps those who are looking for the best short term policies for Tax savings. You can also look for the best term insurances which offer wide life cover. So, you might have come across situations where you can postpone few plans and few of them you can’t. To achieve definite short term goals in the near future, you must not take any risk and be specific about your decisions. During these situations short term insurances are beneficial.

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