Insurance benefits can offer several advantages over tax-saving options like 80C and Section 10(10D) of the Income Tax Act.
Under Section 80C, an individual can claim a deduction of up to Rs. 1.5 lakhs from their taxable income by investing in specified instruments like Provident Fund (PF), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), and others. However, the investment options available under 80C do not offer any insurance coverage.
On the other hand, insurance plans like life insurance policies offer dual benefits of insurance coverage and tax savings. The premium paid towards a life insurance policy is eligible for tax deduction under Section 80C, subject to a maximum limit of Rs. 1.5 lakhs. Moreover, the maturity or death benefits received from the insurance plan are also tax-free under Section 10(10D), subject to certain conditions.
Additionally, insurance plans like health insurance policies can offer tax deductions under Section 80D. This allows individuals to claim a deduction for the premium paid towards health insurance policies for themselves, spouse, and dependent children, up to a maximum of Rs. 25,000.
In summary, insurance benefits provide a range of tax-saving options beyond those available under Section 80C and Section 10(10D). They offer a combination of insurance coverage and tax benefits, making them an attractive option for individuals seeking both financial protection and tax savings.
If you are considering buying an insurance endowment plan that works like a fixed deposit, here are some steps to follow to make the most of your investment:
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Step 1: Pay through your credit card
When you purchase an insurance endowment plan, make sure you pay through your credit card. This way, you can take advantage of the 30-50 days repayment time offered by most credit card companies. This can give you some extra time to arrange for funds to pay your credit card bill, without incurring any additional charges.
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Step 2: Look for cashback offers
Many credit card companies offer cashback on purchases made through their cards. Check if your card offers any cashback on insurance endowment plans. This can help you earn some extra money while you invest in the endowment plan.
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Step 3: Use LiquiLoan
If you want to earn a minimum of 8% return on your investment, consider using LiquiLoan. This is a platform that offers loans against your insurance policy, which can help you earn interest on your investment. This can be an excellent option if you need funds in the short-term, as it can help you earn interest while your investment continues to grow.
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Step 4: Repay your credit card bills using apps
Once you receive your credit card bill, make sure to repay it on time to avoid any late payment charges or penalties. Use apps like CRED and Cheq to make the process of repaying your credit card bills quick and easy. These apps offer rewards and incentives for timely payments, which can help you save money in the long run.
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By following these steps, you can ensure that you make the most of your investment in an insurance endowment plan, while also taking advantage of the benefits offered by your credit card company and repayment apps
"We give membership bonus to our clients" is an offer provided by a company to its customers, where they can receive a bonus on their purchases. This bonus is given to customers who are members of the company's loyalty program or have subscribed to their membership program.
The membership bonus is a percentage of the total amount spent on purchases and can range from a few percentage points to a considerable amount, depending on the company and the purchase made.
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The membership bonus is an excellent way for companies to retain customers and encourage them to make repeat purchases. It can also help customers save money on their purchases, making it an attractive offer for those who regularly shop with the company.
In conclusion, the membership bonus is a loyalty reward that companies offer to their customers, allowing them to receive a percentage of their total purchase amount as a bonus. This is a win-win situation for both the company and the customer, as it helps companies retain customers while also giving customers an opportunity to save money on their purchases.