Dealing with the situation
As the matter concerns paying of tax to your nation, it is also crucial to save it. As the present situation is quite sensitive concerning the economy. The priority is to save lives, but on the other hand, it is also required to keep running the economic activity as the people die due to starvation.
Policymakers must be prepared for the long-term challenges as the effect of the virus will not be for a short term. As it is said, everything has a positive side; also, the COVID-19 pandemic and lockdown have taught us that how one needs to plan rather than leave everything for the last minute.
Different Investor, Differ Gains
There are different types of investors. If one is a high-risk investor and looking for high returns for the Section 80C tax benefits, you can consider investing a total of ₹1.5 lakh per year or above in Equity Linked Saving Schemes (ELSS). This is a tax saving mutual fund scheme that can give multiple digit returns. In other words, you can avail of tax benefits in the short-term and earn good returns in the long-term.
If one is a medium risk-taking guy could keep one part of the investment in ELSS and another part in PPF. PPF gives a good tax-free amount of return.
And if anyone wants to avoid the risk, invest in PPF and fixed deposits as it will give a secure return in maturity.
The investment for the specific groups mentioned above can save a maximum of ₹46,800 on tax every year.
Term insurance a risk investment
The Term Insurance plan works as an income for the family if the primary earner of the family dies. The most important part of a term insurance plan is that even financial consultants suggest taking a life cover even before investing in long-term goals. There is a misconception that only married people need insurance.
Life insurance or term insurance is a necessity for anyone who has financial dependents in the back. The misconception of insurance should be cleared as a person could also have old parents as a dependant, which also needs to get security. A person can save tax by buying term insurance, if the date of your policy's issue is either April 1, 2012, and later total premium should not be more than 10% of the capital sum assured and if date of your policy's issue is either March 31, 2012 or before total premium should not be more than 20% of the capital sum assured.
Term Plan is a type of pure protection plan that comes with assured life cover. But it does not have any maturity benefits. A person could avail tax-free benefit up to 1,50,000/- under 80C. Premium paid, and benefits return on death from term insurance is tax-free as well.
The National saving certificate is a much of primitive one in respect to investment for saving tax. The tax benefit could be taken every year if the same amount is invested. Interest on NSC is paid on maturity and is taxable as per the income tax slab of the individual. The interest earned on the certificates is also added back to the initial investment.
Insurance to rule the investment
IRDA has directed the insurance companies to provide a standard package for COVID insurance mandatorily. But it's also important to note that COVID-19 claims are not very high in number because a very low percentage of the population has a health insurance cover. Now, this is really a matter of concern.
As of now, it has become a necessity for COVID insurance for every person like the other primary needs. Apart from saving on the premium, it also saves tax on the return. It is still an advisable idea to consult a tax expert and make a decision because the benefits can vary in the situation. The main objective in concern to explore financial health at an individual level and country-level in India.
Security and Asset
On the one hand, it is a security for the family. On the other hand, it is an asset for the family in the absence of prime bread earner. IRDA creates an environment that is customer friendly. A person should always keep his knowledge updated regarding the rules introduced by the Income Tax Act every year. The next important factor is to select the time frame. The time frame offered terms up to 35 or 40 years. Longer tenure means a higher premium and benefits.
Sukanya Samriddhi Yojana (SSY) is a deposit scheme for the girl child launched by the Government of India. The initiative is appreciable to save the girl child in the nation. This small deposit scheme is giving a good return indeed with an 8.4% rate of interest.
2020 will always be memorable as a year of disasters. It's seven months already, and still, the world is not getting over the crisis. It is noticeable that the number of positive cases is taking spike every day in a significant number.
The term insurance, fixed deposit, ELSS, and many more tax-saving opportunities are there, but it is crucial to identify the person's best plan concerning his financial condition. The high amount of sum could be assured at a minimal premium rate, which will give benefit under 80C.
Policyholders have not only tax savings but also an exemption from tax on insurance. Considering the present scenario of the pandemic, it is moreover necessary to secure the family with the term insurance as well as health insurance.
The insurance for a family is a need of every person now. People were seen taking loans for consumption rather than asset-building purposes. But now the scene is different minds of people are changing as it is necessary to build assets for the primary need rather for luxury.
In the present scenario of the pandemic, the necessity of improving the health sector came in focus, as well as the need for health insurance and term insurance comes in the center. As it is noted that very less number of insured people are there as in concern now the health insurance has come in focus to save the pocket of people.
Few tips to find the best child insurance plan-
As we all know that a child insurance plan is very important and every parent must invest in the same, in today's date there are hundreds of different child insurance plans in the market from which one can choose the best suiting their requirements. If you are planning to find one such plan for yourself as well, then here are the few tips which you should consider before you settle down to invest in the child insurance plan.