Pros And Cons Of Life Insurance

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against the claims of the creditors of the life assured by valid assignment of a policy. The policy holder can nominated a person to whom the policy money would be payable in event of his death. 9.3.5. Tax relief: The income tax relief is available for amounts paid by way of premium for life insurance subject to the income tax rate in force. Assesses can avail themselves of provisions in the law for tax relief. In this manner the assured is required to pay lower premium for his insurance than he would have to pay otherwise. Under sec 80 c of the income tax act 1956, the premium paid is allowed as a deduction from gross total income contribution to pension plans, qualifies for deduction under sec 80ccc also 100% of the premium paid is deductable as expenditure from business income. When these benefits are factored in, it is found that most policies offer returns that are comparable/or even better than others saving modes such as…show more content…
So it is the best way of making provision for payment of estate duty. 9.3.7. Economic protection: Life insurance provides economic protection to the family members of the insured in case of his untimely death who might be the sole bread earner of the family. It reduces the sufferings of the families on happening of a contingent event it is consider to be the most effective device for providing family security. 9.3.8. Investment element: In life insurance, the insured is required to pay the premium. The premium is a kind of investment the premium is returned to the insured along with additional bonus amount after the expiry of the period of contract. 9.3.9. Helpful to the government: Life insurance provides long term funds to the governments for different developments schemes. This helps the government to develop infrastructure to develop infrastructure and serve the society. 9.3.10. Money when

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