Tax saving is one primary reason behind investors looking for new instruments to invest in. Unit Linked Investment Plans (ULIPs) are the perfect instrument for investors who wish to grow their corpus for meeting long-term goals, as well as insure themselves and assure their family’s financial security. ULIP such as Future Generali Bima Advantage Plus is gaining enormous popularity owing to the two-pronged benefit they offer of acting both as insurance and investment.
The Future Generali Bima Advantage Plus comes packed with the following tax benefits:
- Under Section 80C of the Income Tax Act, 1961, deductions can be availed on the premium paid towards the Future Generali Bima Advantage. Opting for this policy is a great way to save on tax since along with the savings, you also get the benefits of everything the plan has to offer. The premiums are split towards both ensuring an insurance cover as well as investing in different kind of funds. Investors can choose funds based on their individual risk profile and the time period over which they wish to accomplish their goals. For instance, investors who want returns might opt for debt funds which pose low risk and might allow them to generate returns over a period of time. While these are ideal for meeting long-term goals, investors can also choose to invest in equity instruments which are relatively more volatile but might offer higher returns. The only condition is that the premium eligible for deduction is limited to 10% of the sum assured.
- Section 10(10D) of the Income Tax Act ensures that dependents receiving the death benefit or even the policyholder receiving the maturity benefit under the Future Generali Bima Advantage Plus ULIP save on taxes. Both the death benefit and maturity benefit are completely tax-free, and thus guarantee that dependents and policyholders can reap the benefits of the plan. The only condition is that the premium amount is less than or equal to 10% of sum assured
The Future Generali Bima Advantage Plus not only helps policyholders and their dependents save on tax but also offers a host of other benefits. The plan inculcates a habit of saving within policyholders and ensures that their dependents are cared for even when they are gone. Short-term goals such as a child’s education and even long-term goals such as retirement can be achieved successfully by investing in this plan.