What are the tax benefits of the Future Generali Big Dreams Plan?
The Future Generali Big Dreams Plan is a Unit Linked Insurance Plan (ULIP). ULIPs combine the security of an insurance plan with the wealth-creation opportunities of equity-linked investment products. A percentage of the premium paid is used to provide insurance cover, while the rest of the premium is invested in a combination of equity and debt instruments. The Future Generali Big Dreams Plan helps you tailor your investments as per your financial goals and risk appetite by giving you the option to choose funds that are best suited to you.
In addition to this, the Future Generali Big Dreams plan comes with a number of benefits. They are:
You receive significant tax deductions with the Future Generali Big Dreams Plan. Premiums paid toward the Future Generali Big Dreams Plan can be deducted from your total income, thereby bringing your taxable income down. Deductions of up to ₹1,50,000 can be claimed every year under section 80C of the Income Tax Act 1961. The only condition is that the premium amount should be less than or equal to 10% of the sum assured
The tax benefits do not end there. Upon maturity of a ULIP scheme like Future Generali Big Dreams Plan, the policyholder receives the value accumulated in his/her fund. These returns arising from your ULIP are also exempted from taxes, according to Section 10(10D) of the Income Tax Act 1961. Therefore, a ULIP scheme offers both short-term and long-term advantages. You get tax benefits on premiums paid while the plan is active, as well as tax benefits on maturity.
Further, the Future Generali Big Dreams Plan offers complete control over the allocation of your assets - you can switch between available funds according to changing market conditions and your evolving goals. You can choose from three plan variants - Wealth Creation, Dream Protect and Retire Smart - as per your current needs and future goals. These different variants can help you achieve different goals. The Retire Smart variant directs investments toward debt instruments to ensure steady, reliable returns. The Wealth Creation variant, on the other hand, invests in equity instruments. These instruments may be a bit riskier but they also come with the possibility of substantially greater rewards.
Therefore, the Future Generali Big Dreams Plan adapts to your risk appetite. This plan also helps you save taxes and keep more of your income in your own hands.