Compare best term Insurance policy with income tax benefits in India

Term insurance policies in India are believed are effective financial instruments for protecting your financial health. The insurers technically charge minimum fee which is the termed as the premium of the policy and offers the policy holders an insurance cover which is likely to be 100 times of the premium that you paid.

While doing an online comparison one should look at various factors so that one can draw maximum benefits from the plan. The various factors:

a) Your current yearly income

b) Your monthly liabilities

c) Your long term goals

d) Tax savings benefits associated with the plan

On the other hand your insurers considers many factors like you age, your current state of health, your current income and even your existing cover to access the probability of risk associated with you and which are considered to evaluate the premium they should charge you. The premium for term plans may also vary from insurers to insurers based upon their own capacity to take risk.

From the perspective of online customers which means for an insurance company the persons who compare term insurance plans online and buy online are considered to be less vulnerable person to be insured so the premium for online term is always low as compared to premium which one would pay if he/she has bought the policy offline.

As we already know most of the Indian insurance policy holders primarily buy an insurance plan to save taxes so it become an important factor while comparing for best available term insurance plans. Any policyholders who pays a premium towards a term plan, the prima facie one gets is an exemption in Income tax under the Income tax act of India 1965 under section 80C. Since no benefits accrue at the end of the policy term and nothing comes in terms of return of money so the concept of maturity benefits are not there under a term plan as per section 10(10 A).

If we compare the various online term insurance plans by Term Insurance Premium Calculator which are available today from different insurers in India have different features to suit your specific need but the best part is that whichever insurer you choose you are entitled for tax exemption under Section 80 C. As per the financial bill of the current Financial year 2016-17 any premium paid to a maximum of Rs.1,50,000 is eligible for tax exemption subject to condition that the cover applied for is at least 10 times of the premium that you have.Comparing term plans on the basis of tax benefits can be considered as an effective method for choosing the right plan other than just looking at the usual benefits

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