Future Generali

Here's how Future Generali Dhan Vridhi helps you save tax

Future Generali Dhan Vridhi is a Unit Linked Insurance Plan (ULIP) that combines the features of an insurance plan with an investment scheme. An insurance plan safeguards your loved ones’ financial needs from unfortunate events while an investment scheme helps you expand your wealth. Future Generali Dhan Vridhi helps you achieve both these goals simultaneously.

Future Generali Dhan Vridhi comes with a long list of benefits. It fits the financial needs and personal investing styles of each individual - it offers seven different unit funds to suit your risk appetite and future goals. The frequency of paying premium is very flexible - you can pay monthly, quarterly, six monthly, or annually. On top of this, Future Generali Dhan Vridhi can help you slash off a noticeable chunk of your tax burden.

Below are the three ways in which Future Generali Dhan Vridhi plan can help you get tax benefits:

  1. Tax deductions through Section 10(10)D: The maturity fund received at the end of a life insurance plan is tax-free under Section 10(10)D of the Income Tax Act. This benefit applies to the Future Generali Dhan Vridhi plan. Therefore, the death benefit or the fund maturity benefit received at the end of this ULIP plan comes with no tax liability.
  2. Tax deductions through Section 80 CCC: Premiums of up to ₹1.5 lacs paid toward funding insurance schemes are eligible for deductions under Section 80CCC of the Income Tax Act. Hence the premiums paid for Future Generali Dhan Vridhi plan, an insurance scheme, can be subtracted from your total taxable income. This may put you in a lower income tax bracket altogether - and will certainly decrease your tax burden in absolute terms.
  3. Tax deductions through Section 80C: Premiums of up to ₹1.5 lacs paid toward funding investment plans are deductible under Section 80C of the Income Tax Act. Since ULIPS are partly investment plans, the premiums paid for Future Generali Dhan Vridhi qualify for tax benefits under Section 80C.

When considering long-term investment options, people often look towards Mutual Funds. The capital accrued in mutual funds, however, is taxable under Long Term Capital Gains Tax. Long-term mutual fund gains over ₹ 1 lakh are taxed at 10%. Capital accrued from a ULIP scheme, however, is tax-free. In fact, ULIPs come with a triple tax benefit. The premiums paid to fund a ULIPs scheme count towards your annual tax deduction. The partial withdrawals taken from your ULIPs fund are also tax-free. The maturity amount received at the closure of your plan comes with zero tax liabilities as well. Thus, when it comes to investment schemes, ULIPs are uniquely suited to help decrease your tax burden.

SOURCES:

http://www.futuregenerali.in/lifeinsurance/Individual/SavingsPlans/PDF/FGDhanVridhi_ebrochure.pdf

https://www.policybazaar.com/insurance-companies/future-generali-ulip-plans/dhan-vridhi-plan/

https://life.futuregenerali.in/insurance-plans/ulip-plans/dhan-vridhi

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