15 Ways to Avoid Term Insurance Claim Rejection
Is there anything more gratifying than an appraisal for a working professional? One feels immense joy when rewarded for their hard work with a hike or performance bonus.
Assuming, you are here reading this blog, you might have recently received your appraisal or are confused about where to invest your additional income. Assuring you are at the right place; we highly recommend that you must spend your hard-earned money in a productive manner, where it can grow. Don’t depreciate your earnings on luxurious things, travel, entertainment or lifestyle. Make a habit of investing your money more wisely and responsibly to create wealth and secure your financial future. This is what smart people do!
One of the best ways to put your money to better use is to spend it on tax-saving products. Depending on your needs, you may choose from a variety of tax-saving alternatives. By investing in the right products, you may save money on taxes while simultaneously increasing your wealth, one of such products is health insurance.
Health insurance is not only for people over the age of 60. A medical emergency can strike anybody, at any moment, and have a significant emotional and financial impact. Therefore, health insurance is required for everyone, especially in light of growing medical expenditure. Buying health insurance early not only saves money but also makes financial sense. Accidents happen without warning and having enough medical insurance will protect you in case of an emergency while allowing you to put your hard-earned money into long-term investments. Of course, paying the premium saves you money on taxes as well!
When you purchase health insurance, you can claim a tax deduction of up to Rs. INR 25,000 under section 80D. A discount of up to INR 50,000 is available to senior citizens.
Below are some popular investment products where you can get tax exemption up to INR 1.5 lakh under Section 80C of the Income Tax Act, 1961:
As life is unpredictable, it is essential to have financial safety walls to protect your family from any unexpected events. It can be your early death or unexpected health problems that may require immediate financial assistance. Therefore, you should use your increased salary to purchase good term life insurance which will provide financial security for your family in your absence.
Guaranteed Return Products
Guaranteed Return Products are ideal for people who seek a risk-free investment with guaranteed returns. Investors with a long-term vision can also benefit from such products. Such products serve to create a guaranteed corpus while also providing insurance coverage. The best part about these products is that the return is guaranteed, so you know exactly how much money you'll receive each month when the policy matures. This assurance of a steady income helps you prepare for the future and achieve your goals. Another benefit provided by these products is that your family's financial stability will be maintained in case something unfortunate happens to you.
Unit Linked Insurance Plan (ULIP)
If you want to save money for your child's education, marriage, self-retirement, or to buy your dream house, consider investing in a unit-linked insurance plan (ULIP). ULIP is a type of insurance that incorporates investment and life insurance to protect your family financially in case of an unfortunate event. Its premium is divided into two parts: A segment of the money goes toward your life insurance and the rest is put into the investment of your choice. Depending on your risk appetite and goals, you can invest in equities, debt, or a combination of these two. Therefore, ULIPs are an excellent long-term investment alternative for you and your family.
However, you need to understand that insurance products are much more than just tax-saving tools. They must be purchased with the utmost precaution and understanding to receive maximum benefits when needed.
Now, what are you waiting for? The sooner you invest your money the sooner you will reap its benefits. So, be smart and invest your money today!
08 Dec, 2023
Policybazaar and Max Life come together to make short-term investments easier for consumers