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Save Tax like a Pro Using These Tax-saving Investment Plans

“...in this world, nothing can be said to be certain, except death and taxes.”

— Benjamin Franklin

Building a financial portfolio that can help you reduce tax is of great value. And can an investment option get any better than a life-insurance-cum-investment plan where the investor gets the benefit of the triple advantage:

  • High returns in the long run
  • Financial security in case of death
  • Tax benefits

Keeping this in mind, let’s explore 5 different insurance plans that promise not only financial security but also help you avail tax exemption.

Future Generali Big Income Multiplier

This is a life insurance-cum-investment plan that offers double returns as the maturity benefit. Below are some important features of the plan for your quick reference:

Entry Age 4 – 50 years
Policy Term 14 years (fixed)
Premium Paying Term (PPT) 12 years
Minimum Premium Payable Monthly – INR 1,500 Annually – INR 18,000
Premium Payment Mode Annually or monthly

Let’s understand the plan better with an illustration

Kunal(30) invests INR 20,000 annually in Future Generali’s Big Income Multiplier for 12 years. His total investments come up to INR 2,40,000. The policy term under this plan being 14 years, Kunal starts receiving regular income from the 15th year in the following manner:

From 15th to 18th year – INR 30,000 each for 4 years = 30,000*4 = 1,20,000

From 19th to 22nd year – INR 40,000 each for 4 years = 40,000*4 = 1,60,000

From 23rd to 26th year – INR 50,000 each for 4 years = 50,000*4 = 2,00,000

Note: You can also choose to receive monthly pay-outs

Total amount received as returns = INR 4,80,000 (which is twice the premium amount paid under the policy)

Death Benefit– In case the life insured passes away while the policy is in force, the nominee will stand to receive the death benefit.

Tax Benefit– Tax benefits for the premiums paid can be availed under Section 80C of the Indian Income Tax Act.

Bajaj Allianz Elite Assure Plan

This is a participating plan that gives you a Guaranteed Maturity Benefit (GMB) along with bonuses (if any)while simultaneously providing financial security to your family in case of unfortunate events. Below are some important features of the plan for your quick reference:

 Entry Age 0 – 55 years
Policy Term The choice is between 15, 20, 25, and 30 years
Premium Paying Term (PPT) 7 or10 years or equal to the policy term
Minimum Premium Payable Depends on the chosen GMB
Premium Payment Mode Monthly, quarterly, semi-annually, or annually

 

Let’s understand the plan better with an illustration

Keyur(30) selects INR 6,00,000 as his Guaranteed Maturity Benefit for a policy term of 25 years under Bajaj Allianz’s Elite Assure plan. His annual premiumwill hence be INR 58,424. This will give the guaranteed sum assured, which will be equal to 58,424*10 (supposing PPT is 10 years) = INR 5,84,240.

On maturity, Keyur will receive 5,84,240 + Guaranteed Loyalty Bonus + Vested Bonus + Interim Bonus (if any) + Terminal Bonus (if any).

Death Benefit– In case the life insured passes away while the policy is in force, the nominee will receive the death benefit under this policy, which will be the higher amount between:

  • Guaranteed Maturity Benefit
  • Sum Assured

Tax Benefit– Tax benefits for the premiums paid can be availed under Section 80C of the Indian Income Tax Act.

Aviva Dhan Nirman

This is a participating plan that not only helps you live a financially dependent life during your sunset years but also acts as a financial backup in the event of your unfortunate demise by paying insurance proceeds to your loved ones. This plan is specially chosen by individuals who wish to save money in the present to take care of their child’s education in the future.

Entry Age 4 – 50 years
Policy Term The choice is between 18, 21, 25 and 30 years
Premium Paying Term (PPT)

For 18-year policy term, 14 years

For 21-year policy term, 15 years

For 25-year policy term, 16 years

For 30-year policy term, 18 years

Minimum Payable Premium INR 14,486
Premium Payment Mode Monthly, quarterly, semi-annually, or annually

Let’s understand the plan better with an illustration.

Rajesh(30) selects Aviva Dhan Nirman plan with a 21-year policy term to avail a sum assured of INR 5,00,000 to provide for his daughter’s education who is presently 3 years old. He pays an annual premium of INR 88,040 for a period of 15 years.

After 15 years, Rajesh will start receiving an annual pay-out of INR 1,32,060 for the next 6 years. The total amount received at the end of 6 years will be 1,32,060*6 = INR 7,92,360.

When Rajesh turns 51, he may get an additional amount of INR 16,55,780 (if the rate of investment return is 8%) or INR 9,54,380 (if the rate of investment return is 4%).

Death Benefit – In case of the unfortunate demise of the life insured while the policy is in force, the nominee stands to receive an amount as the death benefit which will be the highest amount among:

  • 10 times the annual premium
  • 105% of premiums paid until death
  • Maturity sum assured
  • Sum assured under the plan

Tax Benefit – Tax benefits can be availed under the policy in accordance with Section 80C and Section 10 (10D) of the Indian Income Tax Act.

HDFC Sampoorna Samriddhi

HDFC’s Sampoorna Samriddhi is an endowment plan that offers you a choice to select your Maturity Benefit option. The choice is between these 2 options:

  • Enhanced Cash Option

Here, you receive your maturity benefit in the following manner:

Sum Assured + Reversionary Bonus + Interim Bonus (if any) + Terminal Bonus (if any) + Enhanced Terminal Bonus

  • Enhanced Cover Option

Here, you receive your maturity benefit in the following manner:

Sum Assured + Reversionary Bonus + Interim Bonus (if any) + Terminal Bonus (if any) + Additional Sum Assured in the case of the unfortunate demise of the life insured (this benefit is up to 99 years of age)

Now, let’s quickly look at some of the important aspects of this plan.

Entry Age 18 – 60 years
Policy Term 5 – 40 years
Premium Paying Term (PPT) Equal to the policy term
Premium Payment Mode Monthly, quarterly, semi-annually, or annually

Death Benefit– In the event of the unfortunate demise of the life insured, the nominee stands to receive the sum assured plus accrued bonuses. In the event of death caused by an accident, an additional sum assured amount will be paid.

Tax Benefit– Tax benefits can be availed under the policy in accordance with Section 80C of the Indian Income Tax Act.

Birla Sun Life Vision LifeSecure Plan

Birla Sun Life’s Vision LifeSecure is a participating Whole Life plan that provides long-term financial security. Under this plan, the life of the policyholder is financially protected up to the age of 100 years. Let’s explore some important aspects of the plan.

Entry Age 1 – 60 years
Policy Term 15 –35 years
Premium Paying Term (PPT) Equal to the policy term
Minimum Premium Payable INR 12,000
Premium Payment Mode Monthly, quarterly, semi-annually, or annually

Death Benefit – In the event of the untimely death of the life insured, the policy will pay the death benefit to the family members. The death benefit will be calculated as under:

Guaranteed Death Benefit + Accrued Regular Bonuses (accrued until death) + Terminal Bonus (if any)

Tax Benefit – Under the policy, you can avail tax exemption in accordance with Section 80C and 10 (10D) of the Indian Income Tax Act.

Parting Advice

The plans mentioned here are some of the most sought-after life insurance plans in the market right now. They help policyholders reduce their tax burden under Section 80C of the Indian Income Tax Act. You can choose any one of these plans keeping in mind your requirements. If you need assistance in deciding which plan you must go with, feel free to write to us at support@oneinsure.com or call 86559-86559. Our team of experts will be glad to guide you.

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