Life Insurance: Smart Returns, Tax Savings – How to buy it online?


Life Insurance: Smart Returns, Tax Savings – How to buy it online? As a well-known and inexperienced professional, you need to know life insurance to secure your family’s financial life. Today, the Income Tax Act offers provisions under which you can take out life insurance, generate income and save on taxes.

Many people are now looking for online and zero life insurance plans that offer the best returns. Is this the right way? Now it’s a good idea to research and find the best life insurance plans. But here’s the trap. Many people just put all their insurance money into one insurance policy. Some insurance agents may encourage you to do so. They can show you the online account of one of their clients, which generates revenue of 25-40% per year. Be careful – these are often fake accounts used to scam customers. Unfortunately, many insurance buyers fall into this trap.

People buy life insurance policies with the insured and expect them to give them a lot of returns.

Tax Act

It’s never worth it. You need to spread your risk and get different types of policies. Since Section 80C of the Income Tax Act provides a tax deduction, you can easily purchase multiple insurance policies. Here are some helpful tips on how to diversify your insurance investment.

Get a combination of public and private insurance companies: Public sector insurance companies are known for good liability principles. At the same time, they have a popular image that yields very low yields. Don’t be surprised if the LIC policy returns at least 4-5 percent yearly. Assuming you are a young professional aged 25-40, you can purchase insurance that does not exceed 25 percent of your total insurance coverage. Choose a leading life insurance company in the private sector, such as HDFC Life, ICICI Prudential, Reliance Life, and many more. These companies offer investment insurance plans (ULIP) that can meet your needs for financial growth.

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Choose your finances carefully: if you decide to invest in ULIP, fine. But that’s half the job done. First, you must select funds in ULIP. Insurance companies can offer you a standard fund allocation, but you can always use common sense.

Insurance companies

Life Insurance: Smart Returns, Tax Savings - How to buy it online?
Life Insurance: Smart Returns, Tax Savings – How to buy it online?

Insurance companies have generally invested in the stock market and debt instruments. There are more than enough options in these two categories. Stock mutual funds usually have blue-chip funds, mid-cap funds, and so on. Debt funds invest in bonds and government securities that offer small returns but carry no risk. A Balance Fund is also where your funds are invested in the stock and debt markets. So you have three different ways to optimize the return on your insurance pool.

If you have traditional public sector life insurance, you should opt for a minimum allocation over a bond fund. For example, you can spend about 5 percent on bonds and stick with stock-based funds.

You can choose a combination of blue-chip and mid-cap funds. This strategy automatically balances your risk and yields higher returns in the long run.

Buy insurance online

Buy insurance online: Today, most life insurance companies offer the option to buy online. What are the advantages? There are many benefits. First, when you buy insurance online, the insurance company does not have to pay any commission to the sales representative. You will have indirect savings as life insurance can invest this amount.

Eventually, you realize that your friend who buys the same insurance from an insurance agent earns less than what you buy online. Yes, don’t be surprised. This is a brand reality.

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The insurance company has to waive the 10-40 percent commission coverage in thousands of such cases. This commission is, of course, paid out of the premium you pay. However, the payback, in this case, should be short because the insurance company will invest a small amount and allocate a lot of funds in the name of expenses.

So you have to take out life insurance online. If you have problems or have questions about the package, you can contact their customer service center by phone or online chat.

Even in the worst case, after 15 days of receiving insurance, you have free time to take care of it.

Life Insurance
Life Insurance

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