![]() ![]() This is available for amounts paid by way of premium for life insurance subject to income tax rates in force.Īssessees can also avail of provisions in the law for tax relief. Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. ![]() Besides, a life insurance policy is also generally accepted as security, even for a commercial loan. In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions. In this case the employer directly pays the deducted premium to LIC. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly).įor example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one's salary. It allows long-term savings since payments can be made effortlessly because of the 'easy instalment' facility built into the scheme. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable. Savings through life insurance guarantee full protection against risk of death of the saver. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance.Īt the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Other SavingsĪ contract of insurance is a contract of utmost good faith technically known as uberrima fides. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:ġ.That of dying prematurely leaving a dependent family to fend for itself.Ģ.That of living till old age without visible means of support. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner.īy and large, life insurance is civilisation's partial solution to the problems caused by death. ![]() » Unfortunate death, if it occurs earlier.Īmong other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. » Specified dates at periodic intervals, or The contract is valid for payment of the insured amount during: Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. Any LIC Agent will be glad to help you choose the life insurance plan to meet your needs and render policy servicing. It should, however, be clearly understood that the following content is by no means an exhaustive description of the terms and conditions of an LIC policy or its benefits or privileges.įor more details, please contact our branch or divisional office. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC. In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be. Life insurance in India made its debut well over 100 years ago. ![]()
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