With the advent of technology, tax saving has been simplified in many ways and you can buy an insurance online at your ease. Before, buying an insurance make sure that you plan your finances and saving money is the first step towards financial planning. Apart from this, tax saving also plays an important role in meeting short-term and long-term financial goals. It not just reduces the tax liability but also helps in saving for several other goals that one has set at different stages of life. For an effective tax planning, you need to begin your financial planning at the beginning of the financial year.
Unit linked insurance plan, also known as ULIP is considered as one of the best tax-saving options as it provides the dual benefits of both insurance and investment. A small amount of money goes towards your premium while the remaining amount is invested in mutual funds. This plan is an ideal amalgamation of great returns, best protection, and maximum tax savings. It offers tax exemption under Section 80C and Section 10D of the Income Tax Act, 1961. In ULIP, you can get tax benefits at different stages such as while making premium payments, debt or equity switches or availing maturity benefits. In addition to this, death benefits are also tax free under the policy.
ULIPs prove to be an ideal option when it comes to investing for your long-term financial goals which includes child education/marriage, retirement etc. Also, this long-term investment product gives investors the flexibility to switch in accordance to their financial goals.
Besides, a few reasons that shows why ULIPs are one of the best tax saving investment options, take a look -
On the whole, it’s a wise decision to invest in ULIP. As a combination product like ULIP allows you to enjoy several benefits like tax savings, life cover and guaranteed returns with minimum risks. So, if you are planning for an ULIP investment, then choose to go with Canara HSBC Life Insurance as they provide the best ULIP that offers life cover along with additional investment options like terminal illness, accidental/death benefits as per your needs. Invest 4G plan is a comprehensive Unit Linked Insurance Plan that not only offer flexible premium payment option but gives you an option to invest your money in 7 different funds and 4 portfolio strategies at a minimum charge with mortality return benefit.