Hitesh is looking to invest in a tax saving instrument that grows his wealth too. Yojak tells him that insurance is the best investment to get cover, grow wealth and save tax.

The life insurance policy can claim deduction upto Rupees 1.5 Lakhs on taxable income for premium paid towards life insurance for self, spouse or children under section 80C.

The returns earned from life insurance are tax free under section 10 10 D.

Premium of upto 1.5 Lakh towards pension or retirement plans are exempt under section 80 Triple C.

The total overall deduction from taxable income under section 80C, 80 Triple C is 1.5 Lakhs.

Tax benefits under section 80D can be availed on premiums paid towards health insurance policies for self, spouse or children or parents.

So insurance policies not only provide cover but are also effective tax planning tools.

Hitesh decides to immediately buy a life insurance plan that will not just provide life cover, but grow his wealth and provide tax benefits.

https://www.hdfcsec.com/life-insurance