Policies to Save Income tax

Policies to Save Income tax

September 16, 2019 6:59 am,

Insurance policies are one of the best Tax Saving options. All most all Insurance policies are exempted from Income Tax. In this article, we have considered a few simple Insurance policies to Save Income tax.

Hence, insurance policies provide Life cover, Investment options as well as Tax Benefits.

Policies to Save Income tax

1. HDFCLife Sanchay Plus – Savings Insurance

HDFCLife Sanchay Plus is a non-participating non-linked savings insurance plan. This plan offers assured benefits on the maturity of the policy term. It offers the dual benefits of both insurance and returns.

Plan provides tax benefits for a premium paid under Section 80C of Income Tax Act, 1961.

Key Features of HDFC Life Sanchay Plus:

Let us see what are the key features of HDFCLife Sanchay Plus plan:

  • Guaranteed benefits
    • Maturity value – 180% to 325% of sum assured
    • Guaranteed addition – 8% to 9% of sum assured
    • Enhanced benefit for high premium paying policies above Rs. 1.5 lakhs per annum
  • Tax benefits
  • Flexibility
  • Life long income option
  • Long term income option
  • Optional riders
  • No medicals required

2. HDFC Term Insurance Policies

Benefits of buying Term Insurance:

  • Provides lumpsum benefit to the nominee in the event of untimely demise
  • Offers financial security to the family
  • Helps by providing alternate income in the event of accidental disability or critical illness
  • Policies provide benefit for death outside India as well
  • Provide tax benefits under Section 80C of the Income Tax Act, 1961.

3.HDFC Life – Click2Protect 3D plus – Term Plan

Features of HDFC Life Click2Protect 3D plus plan:

This plan provides:

  • Comprehensive coverage for life long protection including 3D – Death, Disease or Disability
  • Customization of the plan with 9 different options
  • Flexibility to choose the policy and premium payment terms
  • Increased insurance coverage without medicals for certain types of options
  • Flexibility to increase coverage every year through the top-up option
  • Special premium rates for female individuals
  • Tax benefits under 80C

4. HDFCLife Click2protectPlus

It is a term insurance plan in India which provides adequate protection at a nominal cost. The insurance policy provides a wide range of cover options

Features

  • The plan offers comprehensive coverage at a nominal cost
  • It is an online term insurance policy
  • It offers four cover options
  • Flexibility to choose policy term between 10 to 40 years
  • The Option of regular, limited and single premium
  • Tax benefits

5. HDFCLife Click2 Retire plan

It is a Non-Traditional Insurance Plan which offers market linked returns, with minimal charges and helps to achieve his or her retirement goals by planning well in advance.

However, if the insurer dies within the policy tenure, the higher of Fund Value or 105% Total Premiums paid, are accumulated as Death Benefit. The nominee has an option to take this amount as annuity from or to withdraw the proceeds. Upon the payment of this benefit, the Policy terminates and no further benefits are payable.

Some of the key fetures of this plan are:

  • Online hassle free buying process
  • Zero Premium Allocation Charge
  • Limited and Single pay options
  • Lower vesting age of 45 years

6.HdfcLife Pension Super Plus Plan

It is unit-linked pension plan which offers guaranteed death benefit and a minimum maturity benefit. It provides both insurance and investment opportunity. It is relevant to those who want to build a retirement corpus while being insured during the policy term. 

Some of the  key features of this policy are:

  • Policyholder will receive higher of the fund value or assured benefit of 101% of all premiums paid including top-up premiums
  • Guaranteed income for life for yourself and your spouse 
  • Option to commute up to 1/3rd of the benefit on maturity tax-free as per prevailing tax laws 
  • Additional allocation of premium from 11th period on wards
  • Death benefit: beneficiary gets the higher of the fund value or total premiums paid at a rate of 6 percent per annum
  • Maturity Benefit:  Policyholder gets the higher of fund value or 101 percent of all premiums paid

Hence, Considering the factors above, it is always good to plan and invest early to reap huge profits. The policies discussed above provide life coverage, investment options along with tax benefits.

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