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Why Purchase Life Insurance at an Early Stage?
Disclaimer: Tax benefits are subject to change in tax laws. Please consult your tax advisor.
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4 Reasons to Buy Life Insurance While You’re Still Young
You enjoy tax benefits: Aside from the advantages mentioned above, life insurance plans also offer tax benefits to the investor. Section 80C of the Income Tax Act specifies that the premium paid for life insurance during a financial year is deductible from the total income of the investor. This benefit can be claimed for premium payments up to Rs. 1.5 lakhs for each financial year. So, if your annual premium payments come up to Rs. 1 lakh, you can claim the entire amount as a deduction from your income. This, in turn, lowers your tax liability . If you buy life insurance when you're younger, you can enjoy reduced tax burden at an age when you need it most. Disclaimer: Tax benefits are subject to change in tax laws. Please consult your tax advisor.