A good financial planning depends heavily on saving of income tax and insurance is one of its tools. Against the payment of the premium, one receives the benefit of saving tax under different section of income tax act of india. However, insurance policies not only serve as an effective tool to curtail taxes but it also rescues one from sudden financial emergencies. For example, health insurance can cover one for hospitalization expenses. Term insurance provides a significant cover to reimburse financial loss in case of a sudden demise of the policyholder. Travel insurance comes handy to cover expenses against unfortunate event in a foreign country. Therefore, it is necessary to look at insurance beyond the aspect of a tax saving instrument. Tax savings is obviously the icing on the cake but an insurance policy is much more than that. Know more about it Here.