Tired of being pestered at home and in office for lack of tax planning? Consider this easy, inexpensive yet ‘magical’ financial instrument to stop being seen as the irresponsible youngster. This instrument not only saves you tax, but it does so without eating much into your entertainment budget. Add to that, there is no tax payable when the final proceeds of this instrument are paid out! What’s more, if you pay a certain amount towards it every month, it guarantees your family a payback of several times the ‘EMI’ amount – almost from the word go. Imagine paying Rs 10,000 per year, but having the comfort of Rs 30 – Rs 50 lakh if something were to happen to you. All of it, tax-free. Also, if you choose the right kind of product within this investment option, it can grow your monthly savings into a comfortable retirement sum. Interested?
It is quite likely you are! While there are lots of options for the purpose of tax saving, this one has its own set of standout characteristics which no other instrument offers. The product we are talking about is insurance – yes, insurance – the product we all know about but don’t understand – especially the unique benefits it offers. Benefits that cannot be matched by other popular tax saving instruments such as PPF, NPS, NSC, equity mutual funds or even long term fixed deposits that are eligible for tax benefits on investment.